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Philly’s Bloggers, Strippers Taxed While Comcast Given Tens of Millions in Gov’t. Handouts

Phillip Dampier July 30, 2013 Comcast/Xfinity, Editorial & Site News, Public Policy & Gov't Comments Off on Philly’s Bloggers, Strippers Taxed While Comcast Given Tens of Millions in Gov’t. Handouts
Their dollars equals custom-written corporate welfare bills that you will eventually pay for.

Comcast is in hog heaven thanks to Pennsylvania’s generous handouts from its corporate welfare system.

This week, Philadelphia residents are pondering why the city is hounding entrepreneurs and middle class, at-home workers with new taxes and fees while the nation’s largest and richest cable company, Comcast, is receiving enormous tax breaks and government handouts.

Welcome to the United Corporations of America, where taxpayers front at least $80 billion in corporate welfare handouts, according to the New York Times. Comcast is the fourth biggest recipient of corporate welfare in Pennsylvania, dwarfed only by a giant oil company and two Hollywood studios that have learned how to cash in by filming movies inside the Keystone State. The average Pennsylvanian contributes $381 in taxes per year that gets diverted to multi-billion dollar corporations. At least 18 cents of every dollar in the state budget is now spent on corporate welfare programs.

The budget busting handouts have continued without interruption, even during The Great Recession. Elected officials believe the only way to keep big business from picking up and moving to another city or state is to keep making them offers they cannot afford to refuse. But local taxpayers can’t afford to make up the difference. While the economy was melting down from 2008-2010, Philadelphia-based Comcast scored $18 million in tax abatements, credits, and other government handouts. At the same time, local officials faced with upside down city budgets enacted controversial new taxes and business fees on some of the city’s smallest businesses, ranging from bloggers, freelance writers, to independent contractors and consultants.

Pennsylvania is easily among the top-tier of states handing out corporate welfare. In 2011, the Commonwealth collected $4.89 billion in business taxes. But it promptly returned $4.84 billion in tax credits to the state’s biggest businesses. Government benefits for Philadelphia for-profits totaled over $200 million that year alone. Many of the state’s biggest companies receive nearly as much in tax credits, grants, and other benefits that they pay in state and local taxes. Some incentive programs are so broadly written, businesses doing “business as usual” qualify for enormous tax breaks.

Take, for example, Comcast subsidiary QVC. Pennsylvania’s “film incentive program” handed the home shopping network $7.05 million in tax credits just for hawking jewelry from studios inside Pennsylvania. It did not matter QVC had been pitching products from those studios before, during and after the subsidy program handed out the award. Comcast had no plans to move the studios either, but it pocketed the corporate welfare just the same.

While Comcast was building up enough financial resources to acquire NBC-Universal, Philadelphia’s city budget was in tatters. Officials looking for creative ways to boost the local tax base didn’t tap Comcast for the money. Instead, they declared bloggers were now required to get a “business license” to operate within city limits. In fact, the city argued, every person, partnership, association and corporation engaged in a business, profession or other for-profit activity within the city of Philadelphia must now file a Business Privilege Tax Return. The cost just to apply for the business license? $300. Sorry Nathanial, the lemonade stand has to close because you didn’t cough up the $300 before erecting the card table in the front yard.

Comcast-LogoThe “blogger tax” appeared to be sufficiently overreaching (thanks to excoriating coverage in the local media) to provoke the city to begin to phase it out, but no worries — Philadelphia has since found another source of revenue — Comcast? No, of course not. The real money is in taxing strippers. From The Philly Post:

So Mayor Nutter’s effort to tax lap dances—which reached its, er, climax last week in a Philadelphia courtroom — might be somewhat sympathetic if it had been cast as a way to crack down on the general level of skeeviness in the city. After all, it’s a fairly common rule of economics that if you want less of something, just tax it. That’s the logic behind Nutter’s anti-obesity effort to put a tax on sugary drinks, after all.

But nobody’s making that argument. (To be fair, City Hall hasn’t made much of a public argument of any sort, with officials saying they can’t comment on pending litigation.) So we’re forced to assume that the city, always desperate for revenue, is simply finding new ways of taxing its citizens — going after strippers the way you and I might check the folds of the couch for loose change.

And since strip club attendees already pay the city’s amusement tax just to enter the strip club, it seems reasonable to conclude that asking them to pay again when they witness actual stripping is thus a direct tax on stripping itself. It’s a tax on work.

There probably are not enough deep-pocketed lap dancers inside the City of Brotherly Love to cover Comcast’s tax tab. Just for building its new headquarters in Center City Philadelphia, the company was awarded an extra $42.75 million in government subsidies. But it did not stop there. In 2011, the cable company received an extra $18 million in miscellaneous gratitude corporate welfare categorized generally as “assorted grants and credits.” No other Philadelphia business came close to competing with Comcast’s taxpayer-provided gift basket. In return, Comcast showed its gratitude to Pennsylvania by declaring itself a Delaware-based corporation that was exempt from paying the state’s corporate income tax.

Time Warner Cable Helped Bankroll Pro-Cuomo Ads; $175,000 to Dems’ “Housekeeping” Fund

Phillip Dampier July 16, 2013 Consumer News, Public Policy & Gov't, Video 1 Comment
Time Warner Cable will get up to $4 million in tax breaks courtesy of New York taxpayers to create a new call center in Buffalo's now defunct Sheehan Hospital.

Time Warner Cable will get up to $4 million in tax breaks courtesy of New York taxpayers to create a new call center in Buffalo’s now defunct Sheehan Hospital.

Time Warner Cable donated $175,000 to the New York Democratic State Committee that aired a series of pro-Gov. Andrew Cuomo ads, including one touting the governor’s efforts to get corporate money out of politics.

The cable company donated the funds to the Committee’s “housekeeping” account, exempt from New York’s campaign finance laws which ordinarily limit the maximum amount a corporation can contribute to $5,000. The New York Democrats spent nearly $5.3 million to air the advertising on stations across the state this spring.

Asked how Cuomo could justify promoting campaign finance reform while exploiting various loopholes to accept unlimited corporate contributions, Cuomo told the Albany Times-Union, “It’s not a loophole — it’s the law.”

“You can only live within the system that exists,” Cuomo added. “As soon as the campaign finance system is changed — and I’ve worked very hard to change it, I’ll continue to work very hard to change it — no one will be more pleased than myself.”

[flv width=”640″ height=”380”]http://www.phillipdampier.com/video/NY Dems Clean Up Albany Ad 5-8-13.flv[/flv]

Time Warner Cable, CBS, a giant teacher’s union and other large corporations helped pay to run this ad featuring New York Gov. Andrew Cuomo promising to cut the influence of money in politics. (1 minute)

Time Warner Cable was hardly alone. Other major donors were rooted out by the newspaper’s Capitol Confidential:

  • corporate-welfare-piggy-bank— $250,000 came from “Educators United,” an offshoot of the United Federation of Teachers.
  • — $200,000 arrived from the Hospitals Insurance Corporation.
  • — $750,000 from George Soros. His son, Jonathan, has been a vocal proponent of establishing a system of public campaign finance.
  • — Lucy Waletzky and Larry Rockefeller, children of Laurance Rockefeller and niece and nephew to Gov. Nelson A. and uber-banker David, each gave $25,000.
  • — Hedge funder James Simons, the founder of Renaissance Technologies, gave $1,000,000.
  • — $102,000 from “New Yorkers for Affordable Housing,” whatever the hell that is, an entity that shares an address with The Arker Companies’ Queens headquarters.
  • — $50,000 from SONY Pictures Entertainment, $25,000 from Paramount Pictures and $50,000 from CBS.
  • — $350,000 from Brookfield Properties, $200,000 from Tishman-Speyer and $100,000 from The Related Companies, all major New York City real estate firms.
  • — $150,000 from billionaire fertilizer tycoon Alexander Rovt.
  • — $200,000 from Leonard Litwin. Oh wait, I’m sorry: mega-donor Leonard Litwin’s name doesn’t appear in the filing. As is his wont, Litwin funneled his donations through various property-based LLCs he controls. New York’s glorious campaign finance laws treat an LLC like an individual.

Virtually all the donors have some business or regulatory dealings with the state government.

Last month, the governor’s office announced Time Warner Cable was being given taxpayer assistance to take over office space in the former Sheehan Hospital in Buffalo.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WGRZ Buffalo Erie County IDA Approves Tax Breaks For Time Warner Cable 7-15-13.flv[/flv]

This week, the Erie County Industrial Agency approved $757,000 in additional tax abatements for Time Warner Cable. That does not include the $3.1 million in state and local tax breaks already granted the cable company in return for job creation at a new call center being opened in Buffalo. WGRZ-TV reports. (1 minute)

Columbus Suburb Offers Verizon $4.2 Million Tax Break

Phillip Dampier March 27, 2013 Public Policy & Gov't, Verizon 1 Comment

hilliardThe city council of Hilliard, Ohio is offering Verizon $4.2 million in tax breaks to move 1,500 Verizon employees to the community of 28,000 and hire 500 new employees to join them.

The 10-year tax deal will give Verizon a 50 percent incentive on income tax withholding for amounts in excess of $72 million, according to a report by ThisWeek. In 2015, the first full year of the incentive, Verizon’s payroll is estimated to reach almost $90 million.

Verizon is also applying for tax credits at the state level.

Jeff Brown, an attorney representing Verizon, called the agreement “truly a partnership between the entities.”

map hilliardCritics call it truly short-changing local government.

Citizens for Tax Justice note this is not the first time Verizon has been offered tax breaks by Hilliard. In 2008, the city granted $3.4 million in tax subsidies and abatements to relocate 500 call center jobs (300 from out-of-state) to Hilliard. The state of Ohio also approved a 40 percent, five-year tax credit valued at $380,140. Another five-year tax credit amounting to $253,000 over five years was also granted later that same year.

Citizens for Tax Justice believes Verizon has successfully pitted communities against one another to compete for jobs and local investments at the same time the company is cutting both:

Despite being highly profitable,Verizon manages to avoid billions of dollars in federal and state taxes through tax code maneuvers as well as by seeking special tax breaks in the name of economic development. It also shortchanges local governments through property tax abatements as well as assessment challenges.

Whatever savings have come from this tax dodging have not been used to invest in the company or its workforce.Verizon has been eliminating jobs and investing less. During the past three years,the total number of employees at Verizon has fallen by more than 40,000 and the company’s capital expenditures have declined by $1 billion.

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