Nike gets NO NEW TAXES
Oregon- Nike is proposing on being a job creator in Oregon in exchange for a freeze on their state taxes. This proposal could amount to hundreds of jobs for the state which has prompted legistlators to approve this measure as emergency legislation.
Critics of the approval are suspicious about the timing and intent of this special session. When other legislators were out on holiday break Oregon legislators came together and approved an emergency assurance to one of the largest shoe and athletic companies in the world.
This deal once again proves that Oregon will go to great lengths to protect this corporate giant and all it brings to the state. Money and power has once again tromped common sense and assessing fair taxes equally on all taxpaying parties.
“We have a wonderful, wonderful company that’s going to be remaining in Oregon because of what we’re doing here today,” said Democratic Sen. Ginny Burdick of Portland.
This Nike deal is completely unconventional in a world where tax cuts for the wealthy have become commonplace in the political world.
Due to its emergency nature the meeting cost taxpayers $13,000 and came right before the regular legislation was set to be held. With all of these circumstances the deal seems rather peculiar that it happened in such a manner.
Such factors led Kitzhaber to acknowledge the emergency legislative session was “extraordinarily awkward.”
With this initiative in place Nike has promised to make more than 500 jobs and invest at least $150 million dollars into Oregon’s economy. The bill could be signed as early as next week by the governor.
It is still unclear as to why the emergency legislation took place but one could surmise that Nike may have been threatening to expand outside of Oregon. Nike declined to comment.
In a statement, Nike spokeswoman Mary Remuzzi thanked legislators for acting “quickly and decisively.”
“This is a very positive step forward, not only for our company but for the state of Oregon,” the statement said.
This new infrastructure and job creation is critical in a state that has low property tax, no sales take and relies heavily on personal income taxes. Why in such a tax strapped state legislators are actually giving up tax collection on one of the largest employers in the state. No one knows.
Nike justifies this by claiming that these new jobs to be made are in high income positions and therefore will help bolster the economy.
Nike has been quiet on its new expansion plans or what it plans to do or what the workers plan on doing.
Nike has roots deep within Oregon when it was created in the 1960’s by a runner and his college track coach. Nowadays this company has blossomed into one of the most influential and popular brands in the world. The company is also a very large donor to the University of Oregon.
One can see just how much pull money and power can bring into the legislative sphere. It looks like Nike has their state politicians calling emergency legislative sessions and pulling favors for them. What’s next?
Categories: Income Tax, State Tax, Tax Law Tags: avoiding taxes, corporate tax, federal income tax, federal tax, nike tax, oregon tax, political corruption, state tax, tax increase
Study finds Pakistan Officials don’t pay taxes
PAKISTAN- A recent study from the Center for Peace and Development Initiatives and the Center for Investigative Reporting in Pakistan found that less that 1/3 of Parliment members of Pakistan file tax returns annually. This report causes concern for foreign donors and ordinary Pakistanis regarding tax evasion by the highest elites within their society.
Only 126 of 446 of these lawmakers filed returns in 2011. Among these was the President of Pakistan Asif Ali Zardari.
The report does not take into account automatic taxes taken out of their parliament salaries automatically but includes supplemental discretionary income made on top of their salaries. This says a lot as this type of income should be claimed and it is up to the individuals to do so at their own will.
The country raises questions regarding many a politicians that enjoy a lifestyle that far exceeds their salaries. Especially seeing as how the many of the perpetrators of this tax evasion are some of the highest elected officials. With so many elite evading taxes including the elected officials responsible for enforcing them it begs the question why the country even has them at all.
“Tax evasion has become a social norm in our country,” said Umar Cheema, an investigative journalist who compiled the report. “People don’t consider it a crime. But this tax demand established a bond between the people and the state. That’s how you become a stakeholder in society.”
Pakistan has one of the lowest rates of income tax collection in world. Only 2 percent of their entire population are registered to pay taxes and fewer than a quarter of that 2 percent actually do. That means that only a half a percent of their population actually pays taxes. Pretty rough when you think that taxes are what builds government and a society.
Of these tax evaders the wealthy make up a prominent percentage with the poor having to take up the slack.
Even when these tax evaders are caught red handed, they are rarely, if ever prosecuted, due to the corruption on government.
This tax evasion crisis begs the question to foreign donors why bother donating when these donating dollars are more than likely misspent and misappropriated. Only time will tell if Pakistan will get their act together or if this rampant tax evasion will continue to proliferate their society.
Categories: Federal Tax, Tax Evasion, Tax Law Tags: avoiding taxes, federal income tax, federal tax fraud, income tax, political corruption, tax evasion, tax fraud