SWOPblogger

Labels: health care, taxes

The bad grades just never seem to stop coming.

According to a new study, the state received an F for online disclosure of corporate tax breaks and other kinds of economic development subsidies with a score of 0 of 33 (0%).

The state got a better grade on contract disclosure, but lobbying activities in the state remain a relative secret on the internet.

In the press release for the Good Jobs First study:

"The Internet makes possible an unprecedented level of government transparency and public participation." said Good Jobs First Executive Director Greg LeRoy, "But many states have been slow to adopt vigorous online disclosure, especially with respect to economic development subsidies. Twenty-seven states [including New Mexico] and the District of Columbia still provide no systematic online subsidy disclosure."

Full text of the report as well as an appendix on each state (plus the District of Columbia) can be found on the Good Jobs First Web site at http://www.goodjobsfirst.org/news/article.cfm?id=375

Some policy options for Fred Mondragon, state officials and legislators from the study's press release:

• Make it possible to browse through complete databases on subsidies, contracts, etc. as well as to search for data on a specific party.

• Provide a variety of data formats, so that users can either download full databases and analyze the information offline or import the data to other Web sites (through Application Programming Interfaces).

• Enhance subsidy and contract disclosure to include data on outcomes. For example, subsidy disclosure should reveal how many jobs (with what wage rates, benefits, etc.) were created by subsidized companies, and contract disclosure show indicate how well the vendor company carried out its responsibilities.

• Also enhance subsidy and contract disclosure to include data on the past performance of companies. This could include their track record on environmental, workplace, and consumer-protection compliance as well as the existence of any tax liens.

• Combine disclosure about subsidies, contract awards and lobbying with data on state campaign contributions by the companies involved or their top executives.

You can contact your legislator here about vigorous online disclosure of corporate tax breaks (and other economic development deals between governments and corporations), procurement contracts and lobbying activities in the state.

Labels: Clean Elections, corporate welfare, IRB's, Subsidy Disclosure, taxes, Transparency

Wait a minute! What happened in March this year when the spaceport tax was up for a vote? He was quoted then saying "No Tax, No Spaceport" to the residents of Doña Ana County. It was that important. Check out his comments and push for a yes vote on the tax here: http://www.lcsun-news.com/news/ci_5549521

What's the Spaceport going to do you ask?
It will handle "Excursions of communters to the edge of space." To do what? Take small momentos, maybe the ashes of a loved one....looks like they got deals on those. Check out their blog about it. Oh yes, there is a blog about these "amazing excursions" that billionares and there dogs just love to take. http://nmspaceport.blogspot.com/

But not only were sky-high dreamers needed. Lots of political propulsion fueled by high-financing was crucial.

Tha'ts where in steps Bill Richardson with a tax increase, not to the billionaires who don't even live in NM, but to Doña Ana County Residents. They had to flip the bill.

Now let's visit today's paper. Front Page news "Governor won't back rail tax." This tax would be for the expansion of the RAIL RUNNER which means PUBLIC TRANSPORTATION for NM residents that we so desperatly need. I would GLADLY pay that tax.

I ask you Mr. Governor Richardson: Where are your priorities? Are you trying to appeal to the billionaire vote? The republican "no taxes, smaller government" party? Or the NM families that need a public transportation system that will get them to and from their jobs in an affordable way?

When you are president Governor Richardon? Will you build more spaceports around the country for so-called economic development? Or will you build appropriate public transportation for working people to get to their jobs?

Labels: Bill Richardson, NM Spaceport, Rail Runner, taxes

Intel is also a culprit of passing the buck on taxes. SWOP mobilized our members to push for the Combined Mandatory Reporting Act to pass during this last legislative session.

Word on the street as to why it didn't pass, New Mexico has alot of revenue this year, so we don't REALLY need their taxes right now! Oh please! Do we really need to reiterate we are one of the poorest states in this country, our kids are ranked amongst the LEAST likely to succeed, our unemployment rate is still 3.7%, and Pajarito Mesa residents still don't have water!!

Need ideas on how to use Corporate Scoundrels Taxes? Call SWOP we have plenty!

This article really breaks down the Combined Mandatory Reporting Act

BY GERRY BRADLEY
Research Director, N.M. Voices for Children

Mid-April is the time of year when most of us think about the income taxes we pay. Whether our tax bill is large or small, and whether we grumble about paying it or not, chances are, all of us benefit just about every day from the infrastructure and services our taxes buy.

Taxes pay for the roads we drive on to work each day, for police and fire protection, the criminal justice system, and our schools and universities to say nothing of our libraries, museums, swimming pools and parks. But while we’re thinking about what we get for our tax investment, we ought to give some thought to those of our neighbors who are not paying their fair share.
These moneyed, powerful neighbors are engaged in multimillion-dollar shell games where they hide their New Mexico profits from the state’s corporate income tax. These corporate neighbors enjoy the same infrastructure and services we all do, but without having to invest their fair share. And we’ve let them get away with it for years.

New Mexico’s corporate income tax laws have a loophole through which some $80 million disappears every year, according to our own Taxation and Revenue Department. That’s because multistate corporations doing business here can elect to report their profits on a “separate-entity” basis — meaning separate from any out-of-state subsidiaries. So if a separateentity corporation shifts its New Mexico profits to an out-of-state subsidiary, it doesn’t have to pay New Mexico the income tax on those profits.

Here’s how some multistate corporations like to play the shell game: The parent corporation sets up a passive investment company, or PIC, in a state without a corporate income tax (such as Nevada). The parent corporation then transfers its licenses, patents, trademarks and know-how to the PIC. The PIC graciously allows the parent to use the licenses, trademarks, etc., in exchange for royalty payments — which the parent can then deduct from its New Mexico profits as a business expense, even though the money never actually left the business. It just left the state.
To further the game, the PIC can then loan its profit back to the parent corporation in exchange for an interest payment — which the parent again deducts from its state profits. So essentially, the corporation pays itself for the right to use its own trademarks, etc., and then loans its money back to itself so that it may pay itself interest on its own money.

Watching these corporations bounce their money from place to place is rather like watching a tennis match: after a while it gets painful.

Over the last few years, the state’s Taxation and Revenue Department has slapped both Wal-Mart and Kmart with assessments for unpaid corporate income taxes ($11.6 million and $1.2 million, respectively). Both Wal-Mart and Kmart were paying an out-ofstate PIC for the use of their trademarks.

Kmart appealed its case to the state Supreme Court and lost. Wal-Mart also lost, but then conveniently opened a real estate investment trust, or REIT. Now Wal-Mart pays itself rent for the use of its New Mexico property. It can now deduct the rent from its New Mexico profits as a business expense.

The use of PICs and REITs are only two of the ways multistate corporations can shelter their profits. There are more. Fortunately, there is one easy way to stop them all. The Legislature could enact a mandatory combined reporting law. Such laws require multistate corporations to combine the income from all their subsidiaries. A formula is then used to determine how much income tax is owed each state. Combined reporting is now required in 20 of the 46 states that collect a corporate tax for which combined reporting is relevant. And the governors of five more states are recommending that it be adopted.

The Legislature has seen combined reporting bills in each of the last three sessions. All sponsored by Rep. Peter Wirth, D-Santa Fe, these bills have died in the House Business and Industry Committee every year.

Next year when our lawmakers convene again, I hope they will decide that multistate corporations like Wal-Mart and Kmart should be required to invest in the very communities in which they make their money. Since they expect the same sort of police and fire protection that we all get, they should pay for it, too. This sort of tax fairness makes writing out that check in mid-April a little less painful for the rest of us.

Labels: New Mexico, State Legislature, taxes