Friday, May 16, 2025

Ending The Corporate Takeover of Politics: No Money For Taxes But Plenty For Donations?

We are going to continue with our series in examining the ongoing corruption of the American political system, which began with our March 28th article entitled  “Has the Season ofMAGA Finally Arrived? Democrats Struggle for Relevance”. I should point out that I’m hesitant to say “our” political system since, as most of our readers already know, it stopped being “our” political system many years ago. Certainly, since the 2010 Citizens United folly by the Supreme Court when it defaulted to Wall Street.

Any vestiges of a Republic “of, by, and for the people” as President Lincoln famously proclaimed, ceased at that point since it placed elections in the hands of the highest bidder and effectively removed any competition between Wall Street and unions, but between the wealthy elite  and ordinary citizens.

We’ve also taken a look at partisan gerrymandering and unlimited term limits which has virtually ensured that the two corporate owned parties---the Democrats and Republicans---maintain a lock of the system. Partisan gerrymandering as allowed them to redraw congressional districts to their advantage (and basically permitting them to “choose” their voters instead of the other way around).

Unlimited term limits gives them a virtual unhindered lock on their seat in Congress regardless of how low their approval rating is (the same can be said for federally appointed judges, including the Supreme Court). Approval ratings for Congress are often in the low 30% range (it’s been as low as 9%), and yet Congress still has a 97% reelection rate.

Can you imagine bombing every employee evaluation by your boss, consistently getting customer reviews, routinely going over budget, and keeping your job? How about even allowing you to decide on your own pay raises?  Well, in Congress you can.  

We also just covered allowing unequal ballot access. Both of the two corporate parties (which also happen to minority parties when it comes to voter registration) are free to write (and pass) legislation giving them the advantage at the ballot box and effectively restricting competition by making it inordinately harder to get on the ballot.

One tool used is requiring 10x more signatures on ballot application or limiting the timeframe to obtain the signatures, as well as indirectly collude with the media to keep them out of debates (especially at the federal level), limiting “equal time” public access, and the perpetual belittling of third party and Independent candidates.  

Finally, adding salt to the wound, is legislation mandating that all taxpayers pay for the primaries of the Democrats and Republicans, irrespective of their registration, but despite paying,  you aren’t permitted the opportunity to participate. Imagine going out to eat. But, before you can order, you’re required to buy two dinners for someone else, and you don’t have any say in it. Why? Because that’s the restaurant rules, which, by the way, were written by the people whose dinners you’re paying for.  Is that fair? Of course not! In politics, it’s called taxation without representation and that’s what you have in closed primary states.  

Now, let’s say you’re a registered member of the Libertarian or Green party (the third and fourth largest political parties respectively in the U.S.). Despite belonging to an official party,  you are still obligated to pay for the primary of the Democrat and Republican parties. However, nothing goes to your party. Not a dime.

In fact, to keep your party going, you have to pay out of pocket if you want to support it.  Finally, if you’re a registered Independent (the nation’s largest political bloc), you face the same problem.  Not only are you prohibited from participating, you are being forced to financially support  your political opponents!  

So, we’ve obviously covered quite a bit since the kickoff on our political system corruption series. So, let’s take a look at another topic near and dear to our hearts----taxes (sarcasm intended). Actually, we’re going to look at corporate taxes and how it impacts politics.

Everyone is familiar with Tesla, thanks to Elon Musk, the current head of DOGE—the Department of Government Efficiency---whose job is to snoop around and file government “bad actors” and financial malfeasance of taxpayer’s money. But did you know that Tesla, which is valued at $41 trillion dollars, reported earning $2.3 billion dollars in 2024, paid zero dollars in federal taxes? That’s right. Nada.   As an aside, the average American family pays roughly 14% of their income on taxes.

Over the past three years, the auto manufacturer earned  $10.8 billion dollars and yet managed to pay just $48 million in federal taxes. That works out to be a corporate tax rate of 0.4% (the statutory corporate tax rate is 21%). But it was more than just clever accounting involved. Congress actually passed legislation giving Tesla a tax break which saved them some $2.4 billion dollars.

Meanwhile, according to CBS, Elon Musk donated $277 million dollars to the Trump campaign in 2024 through his political action committee, “America PAC”.  He also donated $10 million to the Senate Leadership Fund, which backs Republican Senators. He also gave $3 million dollars to MAHA Alliance PAC, which is associated with Robert F. Kennedy Jr.  I’d say that’s not a bad return on his investment.

In addition, 3M and Airbnb paid zero federal income taxes in 2024. Cisco, a high technology specializing in AI infrastructure, and networking company (reputedly also the second most valuable company in America) paid nothing in federal taxes either despite $2.7 billion dollars in profit in 2024. In fact, 10% of the S&P 500 companies paid nothing in federal taxes.

Top executives at Cisco contributed $2,301,092 to candidates, political action committees and other political organizations in 2024. The candidate who got the most was Kamala Harris. She received $588,525 while $63, 977 went to Donald Trump.  The DNC Services Corporation received the second largest amount at $244,261.

The Democratic Senatorial Campaign Committee got $62,543 while the Democratic Congressional Campaign Committee picked up $50,973 in donations. The National  Republican Senatorial Committee was given $42,947 (it should be noted that between this and Trump, all other leading donations went to Democratic candidates or causes)

Cisco lobbying ranks 197th out of 9,200 company’s who employ lobbying firms. Their lobbyists spent $3,270,000 in 2024, which is up from 2023’s $2,790,000. 32 of their 43 lobbyists were previously government employees. That’s 74.42%. In 2023, they employed 34 lobbyists. 84.29% were former government employees (elected, appointed, or hired).  

When it comes to donations from 3M, the same hold true about top executives donating. 64.40% of all donations went to Democratic candidates, organizations, or causes. Republicans got 35.60%. Interestingly, 74.86% of incumbents were supported compared to just 25.14% of challengers. Kamala Harris was the top dollar among candidate, picking up 105,639 dollars.  Donald Trump received just over $21,000 while the conservative oriented “Never Back Down, Inc” received $150,000 in donations.

Airbnb’s top executive donors gave Kamala Harris the most. $224,995 went to her campaign with only Maryland’s Future, a conservative outfit, picking any money for the right of center crowd. They received $25,000. Of note, $43,050 went to the Libertarian Party’s National Committee . 93.92% of all donations went to candidates compared to just 6.08% that went to political action committees.

As an aside, Airbnb co-founder, Joe Gebbia, joined Trump’s Department of Government Efficiency (“DOGE”), which is headed by Elon Musk.  Gebbia stepped down from his executive role at Airbnb in 2022 but remains active on the board of directors. 

In terms of lobbying, Airbnb spent $940,000 in 2024, which is down from $1,030,000 in 2023. They employed 22 lobbyists in 2024, of which 68.19% held government jobs previously (elected, appointed, or hired).

General Electric earned close to $7 billion dollars in 2023 and not only didn’t pay any federal taxes, they actually got a refund of $423 million dollars! T-Mobile paid 0.4% in federal taxes yet bought back $13 billion dollars of its own stock back in 2023, giving its shareholders a hefty profit on their investment.

Top executives at GE gave Kamala Harris $159, 351. Trump received $43,987. The DNC Services Corporation got $43,342 while the Democratic Senatorial Campaign Committee picked up $32,369. The National Republican Senatorial Committee got $20,527. The Democratic Congressional Campaign Committee took in $19,931 in donations from GE executives.

The overall total donated for the 2024 election cycle was $1,139,136. GE lobbyists “invested” $3.570,000 in 2024. 44 of their 68 lobbyists (64.71%) previously held a government job as note above.  In 2023, it was 71.23% of the 73 lobbyists they employed.

Meta (which owns Facebook) spent $20 billion dollars on stock buyback in 2023, which was four times more than they paid in federal taxes. General Motors spent $11 billion dollars on stock buybacks, which was 40 times more than they paid in federal taxes.

In 2024, Meta spent $24.4 million on lobbying efforts while key executives at Meta donated over $5.5 million to candidates, PACs, and other organizations. Kamala Harris received the most at $1,657,461.  It’s worth mentioning that 53 of their 65 lobbyists previously held government jobs. That’s 81.54%.

These are just a smattering of companies who pay little or no federal taxes. JP Morgan Chase for instance had an effective federal tax rate of 5.9% in 2021 despite earnings of $48 billion. Microsoft ‘s effective tax rate was 9.7 although its earning were $33.7 billion. Chevron’s was 1.8% but earned profits of $9.5 billion, and the list goes on.  

Of course, they take full advantage of whatever deductions are available based on existing federal laws, and who can blame them? However, it is noteworthy that many of key officers for these corporations have also made substantial political contributions. In addition, many of their top executives have received compensation greater than the amount of federal tax their corporation pays.

What can we do? Frankly nothing as long as Citizens United remains in place. However, Congress could mandate a minimum tax based on anticipated profits by independent auditors. They could also direct that no donations can be made to candidates who have a direct relationship with their industry or that all donations over $5000 per person must be directed to a blind trust, to be dispersed by the party along with a percentage to be donated to a fund available to third party and Independent candidates.

Additionally, the cap of $3,5000 an individual can donate per campaign should be eliminated. Afterall, people should be entitled to the same “free speech” as corporations, who are nothing but legal fictions. Of course, partisan gerrymandering must end, and term limits must be imposed. Lobbyists should no longer write legislation and all interaction between election or appointed officials, their staff, and lobbyists should be transparent and made public. 

Rank choice voting would also be a good step for more fair elections as would equal ballot access. Lastly, parties should be responsible for funding their own primaries. Until then, the corporate takeover of  elections will continue.

 

Thank you for reading "Another Opinion", the Op/Ed blog page for the "militant middle".  Here at "A/O" we truly value our readers. At A/O we seek the facts as they exist, not partisan talking points.  We hope you find our articles informative and engaging. Comments are welcome, provided they are not vulgar, insulting or demeaning.  Another Opinion is offered without charge and is directed toward all independent and free-thinking individuals. We ask, however, that you "like" us on whatever platform you found us on in order to keep our articles available for free to others. Lastly, in order to keep costs down, we depend on passive marketing, and therefore, depend on our readers to please forward our posts along. Below you will find links to the sources we used in writing this article. Thank you. 

 

Elon Musk spent $277 million to back Trump and Republicancandidates


Telsa Reported Zero Federal Income Taxes on $2 Billion ofU.S. Income in 2024


Big Corporations Paid Shockingly Little Taxes Last Year

 

Nearly 10% Of S&P 500 Companies Paid No Tax----Including Telsa


FEC: Contribution Limits


These 19 Fortune 100 Companies Paid next To Nothing---or Nothing at All---in Taxes in 2021


Who Pays and Doesn’t Pay Federal Income Taxes in the U.S.?

 


 

 

How companies like Amazon, Nike, and FedEx avoid paying federaltaxes


 

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