Yep, it’s those food stamps that are killin’ us

There are entitlements and then there are entitlements. Just ask Eric Schmidt, executive chairman of Google and its former CEO. For that matter, ask any American CEO how their corporations avoid hundreds of billions of dollars in taxes. Quite a nice return on investment for hiring the best tax lawyers money can buy.

Of course, we always hear about how unfair it is to have a maximum corporate tax rate of 35%. This is a good headline quote. It allows the corporate p.r. machine avoid the fact the effective corporate tax rate is about of a third of that maximum, roughly a litlle over 12%. So what happens to all the money that remains in corporations’ coffers by avoiding taxes? A big share goes to CEOs and other key management in form of billions of dollars in compensation. Some also goes to shareholders, who are disproportinately wealthy compared to other Americans.

So, as you can plainly see, food stamps are the problem.

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