Eric Cantor is right - there is no money for Joplin victims

The first thing Republican Congressman Eric Cantor thought about after the Joplin tornado was how to use the crisis to cut government spending elsewhere- maybe by throwing crippled children on the street or cheating old people of their pensions or denying medical care to the sick. Being the lifetime politician that he is, Cantor knew how to say it in DC language so he didn't actually have to say the words "dump crippled children in the street or you won't get emergency aid".

if there is support for a supplemental, it would be accompanied by support for having pay-fors to that supplemental,”Politico
Cantor is 100% correct though - the government does not have money to spend to help widows and orphans in Joplin. I run a small business and I know you can't just spend money you don't have indefinitely and I know that taxes on businesses like mine are not light. We pay about 1/3 of profits in tax and because we are a small business where income goes up and down but expenses do not, scraping together tax payments is often not easy. But we have to pay high taxes, not because there are so many unfortunate people getting government benefits, but because Cantor and his fellow Republicans, including Roy Blunt, the guy who represents Joplin pass our tax money out to their donors, our big corporate competitors. Although we pay 1/3 and our workers have income tax withheld from their paychecks, our big corporate competitors pay little or nothing in Federal taxes thanks to tax favors that the Republicans in Congress will do anything to defend.

Here's a summary of a few of the tax gifts that President Obama wants to put an end to but Blunt and Cantor and Boehner consider essential. The first an absolutely outrageous trick where big companies don't pay taxes on profits they leave overseas but are permitted to use deductions and credits from overseas expenses to reduce their taxes on US profits!

1. Deferral Rules
Let's assume that you have a lemonade stand and the lemonade is so good that you took it overseas. The profits you make remain in a bank overseas so you don't have to pay taxes on it in the United States because the money isn't on American soil. You do, however, take deductions on your corporate taxes related to the expenses of operating your overseas lemonade stands on your U.S. tax returns.

The Obama Administration doesn't mind if you claim the deductions but not until the taxable money comes back to the United States. It is estimated that this change could generate $200 billion through 2015. That amount of money could be put toward any number of initiatives from education to improving our technology infrastructure.

2. Foreign Tax Credit
Your lemonade stand made money in another country and because of that you have to pay taxes to that country. As it stands right now, you can claim a credit against the taxes you paid to that country. Closing that loophole may generate another $50 billion in savings over 10 years.

3. No More Subsidiaries
Instead of having one company name for your lemonade stands, under current corporate tax laws, you could set up a series of companies all over the world and shield your earnings from taxation. The Obama Administration would like to close this loophole and generate another $86.5 billion over 10 years.

Hey, if we collected all that money not only would the government have enough for disaster relief (and weather prediction research) and also for basic humanity, but small business would compete against bigger business on a more even playing field. But even though small business opposes tax shelters for big corporations, the government is broke, and we desperately need to upgrade infrastructure and education to compete, 70% of Joplin voters who bothered to vote, came out to vote for Republican Roy Blunt as their local congressman.

Oh well, we all know that Republican policies come from the Bible.

  1. Woe unto them that decree unrighteous decrees, and that write grievousness which they have prescribed;
  2. To turn aside the needy from judgment, and to take away the right from the poor of my people, that widows may be their prey, and that they may rob the fatherless!
  3. And what will ye do in the day of visitation, and in the desolation which shall come from far? to whom will ye flee for help? and where will ye leave your glory?

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