194 Despite government awareness: Private Pensions: Conflicts of Interest Can Affect Defined Benefit and Defined Contribution Plans, May 24, 2009. Available at www.gao.gov/assets/130/122042.pdf.
Chapter Eighteen: Wimpy’s Tab
197 Congress does not require: MSB Energy Associates, “Major Federal Tax Breaks that Lower Investor-Owned Electric Company Costs and U.S. Treasury Revenues 2006.” American Public Power Association, December 2008.
200 The 1954 overhaul: Robert M. Solow, “The Production Function and the Theory of Capital.” Review of Economic Studies 23, no. 2: 101–8.
202 The extra $2 million: Christopher Drew and David Cay Johnston, “Special Tax Breaks Enrich Savings of Many in the Ranks of Management.” New York Times, October 13, 1996. Available at www .nytimes.com/1996/10/13/business/special-tax-breaks-enrich-savings-of-many-in-the-ranks-of-management.html.
205 When Mitt Romney disclosed: David Cay Johnston, “Romney’s Gift from Congress.” Reuters, January 31, 2012. Available at http://blogs .reuters.com/david-cay-johnston/2012/01/31/romneys-gift-from-congress/.
206 Almost anyone who is already very rich: David Cay Johnston, “Tax-Free Living: How Some Wealthy Dodge the Top 400 Taxpayers List.” Tax Notes, March 15, 2010, p. 1411.
Chapter Nineteen: Pfizer’s Bitter Pill
210 There are other voices: David Cay Johnston, “Largesse Out of the Public Treasury.” Tax Notes, July 7, 2008, p. 73.
212 So how much of the tax: Pfizer 10-K, 2004–2009.
213 Let’s look again at the statement: Jesse Drucker, “Dodging Repatriation Tax Lets U.S. Companies Bring Home Cash.” Bloomberg, December 29, 2010.
216 Tax Notes writer: Martin Sullivan, “Transfer Pricing Abuse Is Job-Killing Corporate Welfare.” Tax Notes, August 2, 2010.
Chapter Twenty: Hollywood Robbery
219 The Wisconsin tax credit: David Cay Johnston, “Killing the Future: Tea Parties, Tax Credits, and Hollywood Jobs.” Tax Notes, April 27, 2009, p. 479.
223 The most generous state: Steven R. Miller and Abdul Abdulkadri, “The Economic Impact of Michigan’s Motion Picture Production Industry and the Michigan Motion Picture Production Credit.” Center for Economic Analysis, Michigan State University.
223 The Michigan senate staff report: Available at www.legislature .mi.gov/documents/2007-2008/billanalysis/Senate/pdf/2007-SFA-5841-F .pdf.
Chapter Twenty-one: Silly Software
227 Joe Bankman is a Stanford: Joseph Bankman, “Simple Filing for Average Citizens: The California ReadyReturn.” Tax Notes, June 13, 2005, p. 1431.
228 People dislike filling out tax forms: Intuit Investor Day 2011 presentation, http://investors.intuit.com/events.cfm.
232 ReadyReturn is also opposed: Dennis J. Ventry Jr., “Intuit’s Nine Lies Kill State E-Filing Programs and Keep ‘Free’ File Alive.” State Tax Notes, Aug. 30, 2010, p. 555.
Chapter Twenty-two: Pilfering Your Paycheck
234 You read that right: David Cay Johnston, “Taxed by the Boss.” Reuters, April 12, 2012; available at http://blogs.reuters.com/david-cay-johnston/2012/04/12/taxed-by-the-boss/ and “More companies pocket workers’ state income taxes,” available at www.youtube.com/watch?v=SF4J-y7wJc0.
234 In Illinois, for example: David Cay Johnston, “Paying Taxes Your Employer Keeps.” Reuters, July 19, 2001, available at http://blogs.reuters .com/david-cay-johnston/2011/07/19/paying-taxes-your-employer-keeps/ and www.goodjobsfirst.org/taxestotheboss.
237 Donald Trump began his career: Wayne Barrett, Trump: The Deals and the Downfall. New York: HarperCollins, 1992.
Chapter Twenty-three: Of Commas and Character
241 The dominant law: Frank H. Easterbrook and Daniel R. Fischel, The Economic Structure of Corporate Law. Cambridge, MA: Harvard University Press, 1991, p. 283. “A rule against fraud is not an essential or even necessarily an important ingredient of securities markets.”
246 As explained: Johannes R. B. Ritterhausen, “The Postwar West German Economic Transition: From Ordoliberalism to Keynesianism.” IWP Discussion Paper no. 2007/1, January 2007.
Chapter Twenty-four: What It All Means
252 Then in 2009: David Cay Johnston, “Scary New Wage Data.” Tax.com, www.tax.com/taxcom/taxblog.nsf/Permalink/UBEN-8AGMUZ.
253 For all the talk: David Cay Johnston, “Forget Taxes, It’s Wages that Plague Americans.” Reuters, August 6, 2011, http://blogs.reuters.com/david-cay-johnston/2011/08/06/forget-taxes-its-wages-that-plague-americans/.
Chapter Twenty-five: Solutions
261 Almost eight decades: James C. Bonbright and Gardiner C. Means, The Holding Company: Its Public Significance and Its Regulation. New York: McGraw-Hill, 1932.
274 “Labor is prior to”: Lincoln’s December 1861 address to Congress, available at http://www.presidency.ucsb.edu/ws/index.php?pid=29502# axzz1tvhQqnUM.
[ INDEX ]
Aaker, Gordon Allen, Jr., 111
accelerated depreciation, 200–201, 270
Accenture, 20
accidental death, 135
Accumulated Deferred Income Tax (ADIT), 70, 72
acid rain, 29
Adelson, Sheldon, 20
AIDS patients, 170
AIG, 166, 167
airline safety, 110
Akerloff, George, 152–53
Alcoa, 73–74, 268
ALI (automatic location indicator), 4
Allen, Paul, 58
Allied Waste Industries, 140
Almquist, Jeff, 122
AMC Theatres, 9
American Association of Railroads, 39
American Association of Retired Persons (AARP), 160
American Bankers Association, 146
American Jobs Creation Act (2004), 210–13, 216, 217, 251, 270
American Petroleum Institute, 110
American Public Power Association, 71, 197
American Revolution, 23–24
Americans for Tax Reform, 96, 232–33
American University, 155, 163
American Water Works Association (AWWA), 118–19, 121, 122, 123
infrastructure neglect by, 125–26
New Jersey subsidiary of, 124
Angelides, Phil, 171
Anthony, Susan B., 259, 276
antitax movement, 129–30, 133
Apollo Management, 9
Appaloosa Management, 204
Apple, 19, 192
arbitration, 156, 157–61, 244, 266–67
payment for, 163
unfairness of, 162–64
Archer Daniels Midland (ADM), 33
Aristotle, 18–19, 134
Asmundson, Mark, 105
Association of Oil Pipelines, 110
AT&T (American Telephone and Telegraph company), 1–4, 51, 53, 82, 178
breakup of, 2, 3, 5
lobbyists hired by, 7
Athenians, ancient, 18
Atlanta, Ga., 118
Atlantic City, N.J., 12
automated bill-payment systems, 82
automated teller machines, 145
automatic number indicator (ANI), 4
Baby Bells, 2, 5
Bagley, Bill, 72
bailouts, 142, 143, 150, 165
Bain Capital Management, 9, 205
bank failures, 150
bank fees, 11, 142–43
banking industry, 11, 142–43, 144–45, 147–48, 267–68
debit-card fees in, 11, 142, 143–44
reserves requirement for, 267
Rule 23A and, 147–53
Bankman, Joe, 227, 233, 269
Bank of America, 143–44, 146, 148–49, 268
fees charged by, 11, 142
as zombie bank, 149–50
Bankruptcy Abuse and Consumer Protection Act (2005), 17–18
bankruptcy protection, 17–18
Barclays, 148
Barr, Connie, 118, 121, 122–23
barrier to entry, 140
Bartels, Larry, 147
Batinovich, Robert, 263, 264
&
nbsp; Bear Stearns, 166
Beaumont, Tex., 79
Bellingham, Wash., 105, 110, 114, 117
Benitez, Roger T., 158
Benjamin, Brent, 175–76
Benna, Ted, 186–87
Bentham, Jeremy, 243
Berkshire Hathaway, 32, 37, 38–39
Bermuda, 20, 216, 250
Berryhill, Tom, 73
Best Way to Rob a Bank Is to Own One, The (Black), 153
Black, Bill, 151, 153, 242
Black and Veatch, 119
Blackburn, Paul, 116
Blankenship, Don, 174–76
Blankfein, Lloyd, 166
Bloomberg Business News, 150, 215
BNSF Railroad, 31–32, 34, 37, 40, 44, 45, 48, 182
as duopoly, 38–39
price gouging by, 32–34
Bonbright, James C., 261
book accounting, 197–201, 202, 270
Boston Tea Party, 24
Boston Tea Party, The (Labaree), 24
bounced checks, processing fee for, 11
BP (British Petroleum) West Coast, 93
Brandon, Zach, 219
Braverman, Burt, 56–57
Bridgeman, Curtis, 161, 162
Brighton, N.Y., 130–31, 132
Brin, Sergey, 235
British East India Company, 24
Brock, Fred, 252
Brown, Jeffrey R., 192
Brown, Marcus V., 83, 88, 89
Brown v. Board of Education, 273
Brunori, David, 239
Buffalo, N.Y., 112
Buffett, Warren, 31–32, 34, 37, 38–39, 43, 44, 134, 145, 155, 166, 167, 181, 182, 198–99, 244
building codes, 135
Bulgaria, 60
Bureau of Economic, Energy, and Business Affairs, 91
Bureau of Labor Statistics, 248, 255
Bush, George H. W., 93, 248–49
Bush, George W., 22, 43, 94, 95, 96, 110, 129, 150, 201, 210, 211
tax cuts of, 209, 249
Bush administration, 67, 72, 166, 248–49
“business judgment” rule, 19
Butler, Steve, 190
cable companies, 7, 8, 53–59
handheld-remote charge by, 55
cable systems:
as capital intensive, 55–56
municipal, 57–59
CalFile, 232
California, 119, 176, 260
property taxes in, 129
ReadyReturn in, 231–32
California American Water, 121
California Public Utilities Commission, 71, 72, 76, 97, 107, 120, 122–23, 263
California Public Utilities Commission Foundation, 72
California Workers’ Compensation Insurance Rating Bureau, 176
Canadian Broadcasting Conporation, 174
Cannon, Howard, 35
capital gains taxes, 21, 205
capitalism, 38, 102, 150, 186, 268
captive shippers, 33–34
Cargill, 33
Carlsbad, N.Mex., 106, 109, 111, 114
Carlyle Group, 9
Carter, Jimmy, 217
Casarotto, Paul and Pamela, 159–60, 161, 266
Cayman Islands, 216, 220, 236, 250
cell phones, 51, 53
Census, U.S., 248
Central Intelligence Agency, 20, 60
Centrust, 241
Century Investments, 187
CenturyLink, 51
CFO, 184, 188
Chaing, John, 232
Charity Hospital, 77–78
Charter Communications, 58
Chattanooga, Tenn., 57
Cheney, Dick, 20, 94
Chew, Stanley, 181, 182
Chicago, Ill., 134–35
Chicago School, 150, 151, 241–43, 246
China, 17, 47, 62, 243, 250, 251
Chrysler, 234
Chualar, Calif., 119
Ciaccio, Philip C., Jr., 88
Citigroup, 19, 148
Citizens for Tax Justice, 198
Citizens United v. Federal Election Commission, 25–26, 175, 272–73
Citizens Utilities, 121
class actions, 162–63
Clean Air Act (1970), 29–30
clinker, in Powder River Basin, 27–28
Clinton, Bill, 171
Clinton administration, 248–49
Club for Growth, 232
coal, 27–28, 29, 32, 35, 37, 43, 44, 46
Wyoming vs. Appalachian, 29–30
Coast Guard, U.S., 81
Code of Hammurabi, 17–18
collateralized mortgage-backed securities, 171
Cologne Re, 181, 182
Columbia River, 73
Comcast, 8, 53, 54, 55, 56, 57–58
Commodore Hotel, 237
community water systems, 118–27
competition, 30–31, 38, 139–40, 141, 243, 245, 246, 259–60
in cable systems, 56
in garbage collection, 128
in railroad industry, 35–36
in telephone industry, 53
Comptroller of the Currency, 149
Concentra, 182
Congress, U.S., 29, 33, 34, 35, 55, 67, 69, 91, 92, 99, 109, 146, 147, 150, 155, 156, 171, 192, 196, 197, 199, 200, 213, 227, 228, 233, 261, 262, 265, 271, 272
401(k)s and, 186
hedge fund manager taxes and, 204–5
NAFTA and, 250
tax cuts by, 72, 210–11
tax deferrals and, 201
Congressional Budget Office, 253
Connecticut, 236
Consolidated Edison, 108
Consumer Federation of America, 45
Consumer Financial Protection Bureau, 146
Continental tire company, 234–35
contracts of adhesion, 157, 160
control fraud, 8, 151, 242, 245, 267
Cooper, Mark, 45
Corace, Ralph J., 194
Corbett, Glenn, 108–9
corporate income tax rate, 38
corporate socialism, 29, 150, 268
corporate tax deferrals, 197
corporations, 11–12, 14–17, 160, 238
arbitration for, 156
book vs. tax accounting for, 197–201
cash reserves of, 275
executive tax deferral and, 201–4
history of regulation of, 17–23
income tax exemptions for, 262–63
liability limits on, 16, 19
partnerships and, 92
as “persons,” 24–26, 273
political influence of, 19–20, 25–26, 272
profits changed to expenses by, 236–37
profits of, 91
promissory fraud by, 161–62
rise in power of, 20, 23–26
Roman precursors to, 19
shareholders as sole responsibility of, 16–17
state income taxes retained by, 234–39
corporations (cont.)
tax deferrals, 197
2004 tax cuts for, 210–11
corruption, 31, 242
Council Rock Avenue, 130–31, 137–38
Council Rock Refuse District, 131
Countrywide Financial, 152, 153
Cox Cable New Orleans, 85
Cox Communications, 56, 58–59
Cox Enterprises, 58
Cranick, Gene, 134
Crawford, Susan P., 63
credit-card companies, 17–18, 268
credit-card lending, 145
credit default swaps, 148–49, 165–66, 171
credit ratings agencies, 149
Crocker Bank, 11
crony capitalism, 242
CSX, 48
Cuba, 20
current account deficit, 243
Daniels, Mitch, 126
Davis, J. C. Bancroft, 24–25, 273
dead-weight loss, 36
debit-card fees, 142, 143–44
Decision Economics, 210
“defective” grantor trust, 205
Defense Advanced
Research Projects Agency (DARPA), 59
Defense Department, U.S., 59
deficits, 209
Delaware, 222, 236, 237
Dell, 251
Deloitte Tax LLP, 215
Demosthenes, 18
deParle, Jason, 250
Depp, Johnny, 218, 224
deregulation, 67, 242, 244
of pipelines, 116
derivatives, 165, 171, 241, 245, 267–68
Deutsche Bank, 148
Dillinger, John, 218
diphtheria, reduction of, 137
directory-assistance calls, 4–5
disbursement fee, 144
Disney, 222
Doctor’s Associates, 159
Dodd-Frank Wall Street Reform and Consumer Protection Act, 142–43
Doherty, Ed, 81–82
Domar, Evsey, 201
Donlon, William J., 179
Douglass, Frederick, 275–76
Dow Jones, 252
Dreamworks, 222
Dred Scott decision, 273
Drucker, Jesse, 215
duopoly(ies), 36, 39, 48, 53–54, 56
Dunn, Vincent, 107–8
Easterbrook, Frank, 241–42
Easterns Automotive Group, 154–55, 163–64
economic development agencies, 10, 237
Economic Recovery Tax Act (1981), 20
Economic Research Associates, 224–25
Edison, N.J., 108
Edison Electric Institute, 98
Edison International, 265
education, 136–37, 243, 275
electricity, 30, 37, 38, 44, 261
electric utilities, 43, 45–46, 98, 66–67, 103–4, 260
inflated billing by, 81–82
stranded costs in, 68–69
tax benefits of, 71–76
tax deferrals for, 197–98
travel money for regulators of, 72–73
Electrolux, 9, 234
electronic bill-paying services, 145
Ellison, Larry, 256
El Paso Corporation, 169–70
El Paso Natural Gas, 106, 108, 114
eminent domain, 75, 123
Empire Pipeline LLC, 112–13
Empire State Pipeline, 113
Employee Benefits Research Institute, 187
employment, 248–51
energy industry, 94–95
subsidies for, 98–99
Enron, 90, 94, 95, 191, 192, 197, 241
Ensign, John, 210, 213
Entergy, 78–89, 198, 265
CEO pay at, 79–80
“Code of Entegrity” of, 89
overbilling by, 81, 84, 85, 89
profits of, 79
refunds paid by, 80–81
Equilar, 79
Escalation Consultants, 33
executives, tax deferrals for, 201–4, 270–71
executive salaries, 265
ExxonMobil, 19, 93, 96, 98
The Fine Print: How Big Companies Use Plain English to Rob You Blind Page 36
