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Report Shows How Company Shifts Tax Bill to the 99 Percent
Report Shows How Company Shifts Tax Bill to the 99 Percent
$100-Billion Verizon One of Nation’s Champion Tax Dodgers - http://cwa-union.org/vzunpaidbills
A new report this week reveals how Verizon achieves a negative federal tax rate to avoid paying its fair share of taxes, and how the company aggressively uses tax loopholes and subsidies to cut its tax bills even more.
"Unpaid Bills: How Verizon Shortchanges Government Through Tax Dodging and Subsidies," (PDF) was produced by Citizens for Tax Justice (CTJ) and Good Jobs First, a national policy resource center.
The report shows that Verizon, a $100-billion corporation, paid an effective federal tax rate of -2.9 percent between 2008 and 2010. In 2010 alone, Verizon's federal tax rate was -5.7 percent. In fact, the company received a federal tax rebate of nearly $1 billion.
The report is especially timely as the congressional "super committee" meets on budget and tax issues. Verizon has put the "Reverse Morris Trust" tax loophole to extensive use, avoiding $1.5 billion in taxes on the sale of its landlines and other assets, CWA Senior Director George Kohl said.
"Verizon doesn't use its tax avoidance gains to keep up its copper network or extend its fiber optic technology to cities like Boston, Baltimore, Buffalo or other communities, or create quality jobs. It isn't negotiating a fair contract with the workers who have made this company so successful," Kohl said. "Instead, it is demanding nearly $1 billion in givebacks and making sure that its top executives stay in the top 1 percent of American earners. That's why we say 'the 99 percent' are picking up Verizon's tax tab."
CTJ recently identified Verizon as one of the nation's top tax avoidance offenders, manipulating state revenue rules, seeking economic development subsidies, and structuring its business and tax affairs to produce a negative federal income tax rate. Further, Verizon has received state and local tax subsidies in at least 13 states.
CTJ Director Robert McIntyre, the report's lead author, said the billions of dollars that companies like Verizon receive are "wasted dollars that could have gone to protect Medicare, create jobs and cut the deficit. Too many corporations are gaming the system at the expense of the rest of us."
Philip Mattera, research director of Good Jobs First and also a report author, said Verizon and other tax dodgers "aren't using these tax givebacks to create good jobs or invest in their companies in ways that would improve our communities. Ordinary Americans are struggling to pay their own taxes and are picking up the tab for these corporations as well. It's a system out of control."
Union Counter-Proposals Presented Monday
Business Manager Ed Starr reported that the IBEW System Council T6 for Massachusetts and Rhode Island and the CWA District 1 and IBEW Local 2213 Regional Bargaining Committee and the Mid-Atlantic Regional Committee met Monday with the Company in Rye, NY. The joint union Regional bargaining Committee presented a series of comprehensive proposals covering healthcare, returning jobs to the bargaining unit, benefits, absence, and job security. The Company committee had a few initial questions and is currently reviewing our proposals. We expect to meet with the Company to answer any additional questions they may have prior to receiving any counter proposals from them. We will keep this website and tape updated as developments occur. We would like to remind this membership that Verizon still has 14 people out suspended indefinitely from alleged strike activities. These people were not allowed to return to work when we all came back from the strike. In this local, the number of people out still stands at 6. Dracut CWI Steve Sousa will be returned to work this week. As part of the return to work agreement from the strike, the company is supposed to meet with the attorneys for the union and provide all the alleged allegations against these members. We believe that meeting will be next week and Business Manager Ed Starr will be at the meeting with the T6 attorney representing all the locals. Keep in mind these people have been out of work for 60 days now, counting the two week strike. They could use all of our support, as they have families and they are struggling right now. They stood proud for us, so let's do right by them. For those members who have stepped up to help these people, we thank you. It is unfortunate that we work for a company that treats its employees this way. As anyone can attest to over the last 5 years or so, the treatment of the union workers all over Verizon by the management teams has been deplorable and the whole workforce is disenfranchised. This attitude toward the workers was never so apparent than this summer when the company came to the bargaining table in bad faith with contract proposals looking to take away everything that we have and the contractual protections that many members before us went on strike for. We are still very far apart in negotiations and in no way close to a contract. These people out suspended right now are not helping the situation at all. We will see what the future brings, but the most important message we can deliver is to be diligent in your duties at work and perform all necessary practices. We are still getting reports from all the locals that members are still being scrutinized at work. What we cannot do is to help them suspend and fire people by not following our work practices..... This goes for everyone in every department. Ed Starr
Letter to the Editor of The Eagle Tribune
EagleTribune.com, North Andover, MA August 19, 2011 Letter: Verizon strikers are fighting to save jobs To the editor: I am 34 years old. I am 5 feet, 3 inches and I weigh 115 pounds, so please stop calling me a fat, lazy slob. I am not lazy. I have been working since I was 14 years old. I am the loving mother of two young children, so please stop calling me a thug. My father died at the age of 45 and my mother at the age of 49. I am predisposed to cancer, diabetes, high blood pressure, heart disease — in other words, the Grim Reaper is seeking me out. I do not want to leave my children motherless, therefore health insurance is extremely important to me. I work 40 hours per week, I commute more than two hours per day, I pay taxes (just for the record, Verizon does not), I have a mortgage and credit card debt, I pay for child care — I am just like most of you. Except, right now, there is no income in my household. My husband, like me, works for Verizon. With Verizon's proposed $20,000 per year pay cut, my household is $40,000 down. Yet, much of the public believes that I should shut up and be happy I have a job. I am happy that I have a job. I want my job. I want my job so badly that I am willing to go weeks without an income, just to keep my job. Much of the public is under the impression that if I just give up and give Verizon what they want, I will go back to my job and live happily ever after. The truth is my job will most likely be done by someone in an overseas call center. For some reason, I am expected to just give away what hundreds of thousands before me have fought for. My mother walked the picket line for 16 weeks in 1989, so that I would have the pay, benefits and job security I have now. I should just consider that a waste of time and give that away? Let me ask all of you one question: Would you just give back to your employer $20,000 in salary? Verizon is an extremely profitable business. The CEO makes $55,000 per day. I am proud to be a union member. That is not a popular sentiment in today's world, but that doesn't make me any less proud. I may be without income, I may be extremely unsure of what the future holds, but I have 45,000 brothers and sisters who will be there for me. Should I be ashamed of that? We're not on strike over pay raises or even benefits. We're on strike to keep what we have. We're on strike to keep jobs in America. I only ask that before you cast stones at me, learn what we are fighting for. I am almost certain that most of you will find it's worth fighting for. Stacie Cashman Striking Verizon employee Methuen
Slow Progress Thursday at Bargaining
Bargaining Update Thursday, August 18th Ed Starr reported from Rye, NY that negotiations continue but progress is slow. This is a step forward from before the strike, when the company was at the table but no real progress was being made. Slow progress is better than none. This is going to take some time, so hang in there, keep up the great work, and don’t ever forget to be proud to be a Union Member. Craig Fields
Slow Movement at Bargaining Table Monday
Regional Bargaining Report Monday, August 15, 2011 11:30 PM The IBEW System Council T6, the CWA District 1, and IBEW Local 2213 Regional Committees met in Rye, NY. The union committees reviewed some of the proposals by the company as well as the information we have received from the company. We are scheduled to resume talks tomorrow (Tuesday). And new developments will be reported on this website and the tape. Ed Starr
Update from Bargaining on Sunday
Regional Bargaining Report The IBEW System Council T6 Business Managers, the CWA District 1 & IBEW Local 2213 Regional Committees met with the Company today in Rye, NY. The Union had more questions for the company regarding some of their proposals that were discussed yesterday. The company asked for a recess to research these questions so that they could answer our questions and concerns. We are scheduled to resume talks tomorrow morning. Discussions at this point with Verizon have been on-going but slow. Bear with us as we navigate our way through the many, many proposals we have been dealing with. I appreciate the efforts of all of those who are working the picket lines, while we are negotiating your contract. Everyone is in this together and the sacrifices of all of us and our families are the price we all have to pay being union members in our struggle to maintain a level of benefits for our families. Stay strong and committed to the task at hand. If anyone knows of any retiree's, please have them contact the union hall because all of the IBEW unions are getting a presence of retiree's showing up to help and we want everyone helping the cause. It is all hands on deck and again, all of your efforts are truly appreciated. I will keep the union hall informed as developments occur. Hang Tough! Ed Starr
Regional Bargaining Report Saturday, August 13, 2011 The IBEW System Council T6 Massachusetts & Rhode Island Business Managers, the CWA District 1, and IBEW Local 2213 met with the Company Saturday in Rye, NY. Proposals were discussed and talks recessed for the night as the Company was still reviewing your Union’s latest counter proposals. The Unions and the Company are scheduled to resume discussions at 10 AM Sunday morning. Talks have been ongoing, moving slowly but the union is working through many, many issues. Keep in mind that Verizon left over 100 concessionary proposals with us before we struck last Saturday night. We have been working through these issues with the hopes to get onto the larger issues and get people back to work as soon as possible. As we enter week two of this strike, remember to keep the faith, remain vigilant and stand by each other. Keep up the good work as I have been getting many reports of the excellent job our local is doing. Thanks and hang tough! Ed Starr
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Bargaining Update from Saturday
Regional Bargaining Report Saturday, August 13, 2011 11:15 PM The IBEW System Council T6 Massachusetts & Rhode Island Business Managers, the CWA District 1 & IBEW Local 2213 met with the Company Saturday in Rye, NY. Proposals were discussed and talks recessed for the night as the Company was still reviewing your Union’s latest counter proposals. The Unions and the Company are scheduled to resume discussions at 10 AM Sunday morning.
Regional Bargaining Report
Regional Bargaining Report Thursday, August 11, 2011
The union and the company met and the union presented several counter proposals to the company. The Union tried to make proposals that would jump start these negotiations and help to generate momentum. We recessed and waited until late this evening when the company responded to our proposals.
Your Unions helped this company when they were NY Telephone and New England Telephone to merge and become NYNEX. This Union helped this company when they were NYNEX and Bell Atlantic to merge to become Verizon. They needed the help of your Unions to help convince the politicians that these mergers would be good for the public. We helped this company become this powerful corporation. We watched as NNYEX and Verizon poured money from the landline side into the Wireless side to build their Wireless Network. This is one company - VERIZON – an extremely profitable company. We will not allow this company to now try and destroy us and that is what they are trying to do at the bargaining table. They are trying to take away our collective bargaining rights. The only company proposal that they have agreed to withdraw from the table is wages that are linked to your appraisals. I must remind everyone that the company has no proposals on the table to give you any wages at all. Every company proposal is to give something back to the company. In order to keep some of our benefits we have to give away one of the benefits we have today. The company still has all of their retrogressive demands back on the table. We must step up our fight. We told the company tonight that our members are prepared to fight to hell freezes over to secure a fair contract and your bargaining team is prepared to bargain for as long as it takes to secure a fair contract. We will take this fight to the public and we will raise the stakes. We must make this the battleground fight for the Middle class. Verizon will be the target for every union member and every middle class family. We will not allow this very profitable company to destroy the Middle Class. If and when any developments occur, we will pass that message on!
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T6 Back at the Bargaining Table Wednesday!
***Bargaining Update *** Wednesday, August 10th IBEW Local 2321 Business Manager Ed Starr and the rest of the T6 bargaining team are heading back to NY to the bargaining table. We will keep the tape and website updated as developments occur. »
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