Bank of America was the target of a protest organized by local unions who are questioning why the bank, one of the largest in the country, paid no state or federal income tax last year.A group of about 60 protestors picketed and chanted in front of the bank on Middletown's Main Street Saturday morning. Other protest took place at Bank of America branches in cities across the state.
"We're paying our taxes. They're paying zero taxes," said Jim Vigue, political director for SEIU in Middletown. "We understand the governor's idea of shared sacrifice, but it needs to be fair. He hasn't done anything about closing these corporate loopholes."
Vigue also noted that many Connecticut Bank of America employees are paid close to the minimum wage and that 20% of employees are on the state's Husky health plan.
"That costs us $7 million," Vigue said. "And Bank of America pays no state income taxes, and no federal income taxes."
According to material handed out at the rally, Bank of America earned $6.3 billion in 2009, and received tax credits of $600 million.
Phoebe Herndon, a CVH employee who drives to work in Middletown every day from Ledyard expressed frustration that Bank of America executives received $35 billion in bonuses and compensation in 2010, but that most employees are under compensated.
"I'm mad," Herndon said. "They are so greedy, and their employees are only making minimum wage."
"I'm paying my fair share of taxes, and they should be doing it," said Travon Jackson, another CVH employee."I find it outrageous that this bank which has so much cash on hand does not pay taxes," said Middletown Common Council member Ron Klattenberg. "I think elected officials need to get behind these (protesting) groups and put pressure on the banks.
Klattenberg also indicated that Bank of America was the exception, among local banks and bank branches, for their unwillingness to participate in local community affairs.
Organizers said that protests against Bank of America would continue every weekend at different sites in Connecticut.
How can we participate in these actions?
ReplyDeleteUnless you have evidence to the contrary (which you have not posted), I think we can assume that the amount of taxes paid or not paid by BofA is calculated based on applicable federal, state and local tax laws and regulations. Much as you might not like it, they have the right to do whatever they can to minimize (not evade) their tax burden. I'm quite sure you do it too.
ReplyDeleteIt is hypocritical to suggest that BofA should forego whatever tax breaks may be available to them, unless you are that rare person who does not take any personal exemptions, foregoes all deductions like home mortgage interest, and does not partake of tax deferral opportunities such as 401K plans or IRAs, in order to minimize your personal income taxes.
Is it fair? That is a question you need to ask your elected representatives, including Mr. Lesser. I won't argue that the tax laws are complex, arcane and not always logical, but they are what they are because your legislators wrote them that way.
In short, if your issue is income taxes, shoot at the right targets.
Martel we reported the events as they happened. I cannot speak for Ed, but to me, his post looks like simple facts only. (who said what, when, where, etc). As for mine, I made a point of simply capturing what was going on and posting that as-is. No commentary and no analysis. Just news. I agree that there are many sides to this story. I don't want you to think that the EYE is purposefully omitting any angle as we are not doing investigative journalism here, we are only reporting an event that happened in our town. If I had seen any representative from the bank I would have interviewed them. I did talk to the guy who was doing construction work on the bank building and caught his comment "my family needs to eat too" - it may have been hard to make out in the video. I think your comment is meant to be directed at the leaders of these protests, not the EYE. Thank you for reading.
ReplyDeleteThank you, Karen. I did not mean my comment to be a shot at the Eye or at Ed. I agree that the story was merely posting the facts as they occurred.
ReplyDeleteI did intend to comment on the misdirected ire of those protesters who are focused on BofA's taxes. For example, Mr. Lesser insists he is not trying to "demonize" BofA. Really? If BofA is calculating and paying its taxes in accordance with the law (which includes a variety of deductions, credits, etc.), on what basis does he maintain that they are not paying their "fair share" - as that concept has been defined by the laws that Mr. Lesser and his ilk have passed? How does Mr. Lesser determine whether his own personal tax bill is "fair", except in reference to those tax laws?
As for Mr. Klattenberg, I guess anyone who has "so much cash on hand" needs to pay extra taxes in order for things to be "fair". Sorry to disappoint you, Mr. K, but the income tax laws don't work that way. Cash on hand does not equal income.
The protesters may have any number of valid gripes against BofA, but without any suggestion (much less proof) that BofA is violating the income tax laws, the argument that BofA is evil because of the amount of taxes it does or doesn't pay is designed only to inflame public emotions.
Protesting our local Bank of America was a way to draw peoples' attention to the fact that many such entities do not pay taxes. They were singled out as an example because they treat their employees and customers more unfairly than the rest. Of course only politicians can change the fact that BOA doesn't pay taxes - but first people need to know what's going on. Politicians don't change anything without being pressured.
ReplyDeleteThis rally was also our way of telling BOA that we know what's going on, and we don't like it! Clearly their campaign contributions hold sway over our politicians - which is funny, because those officials are elected to represent us, the taxpayers.
With all the talk of debt and budget cuts, now is the time to educate people. In these times of massive taxpayer-funded bailouts, why are the middle class and poor shouldering the burdens of multinational companies whose executives are taking home record amounts of pay? Ask your representatives in Congress.
So yes, it was essentially to inflame public emotions :)
ReplyDeleteBut not pointlessly, we hope! It's just so hard to get people to admit that they are affected by politics - and even harder to get them to admit that they might be able to help change things. We're sick of the 'little guy' getting blamed for all the problems caused by the runaway corporate sector. Shedding light is a respectable activity, in my opinion.
Thank you, china, for your intelligent response.
ReplyDeleteWhat I find the most annoying is the sanctimonious posturing of our elected representatives, who never ever acknowledge that their actions are the cause of many of the problems, and their insistence on demonizing (yeah, I said it) those who follow the rules the legislators set.
Imagine this scene: April 15, 2011 in the Lesser household. Mr. Lesser finishes calculating his federal and state income taxes. He scratches his head thoughtfully, then says to his spouse or s/o "Honey, I know we only owe $X in taxes, but that's not enough - I think our fair share should be $2X, so that's what we're going to pay this year."
Martel,
ReplyDeleteI noticed you seem to be a just the facts person which I really like so let me give you few.
1) Bank of America is CT's largest bank and is based in NC.
2)Bank of America's foriegn subsidary is Based in the Cayman Islands
3) Bank of america took hundreds of Billions in TARP money.
4) Bank of America paid exactly ZERO taxes in the state of CT last year or any of the last 5 years.
5)Bank of America which made over $10 billion in 2009 paid ZERO taxes to the United States of America for 2009
6) Bank of America just recieved a check from the US treasury for over $600 million in the form of a tax credit on taxes the NEVER paid.
7) They do this by claiming that their US operation was a massive money loser but their overseas operation made $17billion and in the Caymans their is NO corporate tax.
8) One more fact Martel so you know its not just them. Exxon Mobil paid ZERO taxes in the US also but made over $10 billion in profits.
So is this a fair economy Martel???
One more tidbit,
ReplyDeleteIn 1995 the most corrupt Governor in the History of the great state of CT inmate #167350
Got a bill passed with the help of his Senator Joan Hartley that allowed Webster bank to file as a LLC the same as a local Carpenter would the result: Webster Bank pays no taxes but a $250 fee to the state of Ct and has done so since 1995.
Oh yea, Senator Hartley's sister is married to Jim Smith of Middlebury also the CEO of Webster Bank.
On the convict note:When inmate #167350 was released from the Federal Penetentuary he got what every convict gets,a taxpayer finance job as Waterbury's job czar to the tune of $139,000 a year.
In over four years he has created ONE JOB HIS OWN!
Anon 1:11, you miss my point. It's about who is responsible for allowing BofA to pay zero taxes. Those are the people who should be the target of your protests when it comes to taxes. They are the ones who have created a set of rules you say lead to unfair results.
ReplyDeleteNeither you nor anyone else has claimed that BofA didn't play by those rules, though it's quite clear you wish the rules were different. I am not defending the "fairness" of the existing system, but if you don't like it get in your legislators' face. They are the only ones who can change the game.
Martel,
ReplyDeleteI saw someone post the question to Malloy last night and he said to the person "Idont know what your people are saying to you but they are lying" he then went on to say he is raising taxes on the wealthy.
Which is not the claim!!
I know Dan has ADD and so do many people but that doesn't give him the right to misstate the facts.
So if the governor is willing to flat out lie to help out wealthy benofactors in fairfield county and the democrats being so giddy they have a democratic Governor, your suggestion is to ask them to do the right thing???When Martin Luther King went to see John Kennedy with other civil rights leaders in 1962 to ask him to pass civil rights laws Kennedy responded by telling them "Your right now is the time to do this now you go out out and make me do it!!"
This may be an inconvienence for bank of america but it sends the right message to those elected officials to do the right thing.
Corporate America thru the US Chamber of Commerce invested over $4 billion in the 2010 elections while unions spent $91 million.
It's time for the revolution to begin!!
Anon 2:47, though you may doubt it, even I do not think the BofA's of the world will voluntarily pay more taxes than they absolutely have to pay.
ReplyDeleteSo yes, I am saying tell (don't ask) your elected representatives to do the right thing. Much as you gripe about how much Corporate America spends on lobbying every year, you have something a corporation will never have - you can vote. If you don't like the responses you get from your elected representatives, hold that over their head.
You seem to be no fan of politicians (Inmate #167350, Gov. Yollam, Sen. Hartley), so you should have no problem making them the targets of your efforts to reform the tax system. Only they can change it.
To Anon. 2:47--let's narrow the gap a little. AFSCME, SEIU,and the NEA spent $171.5 million on the 2010 campaign. Although that pales in comparison to the CofC, the big difference is the unions force their members to contribute.
ReplyDeleteBTW, the B of A was a huge contributor to the Obama campaign.
Also, the title of most corrupt Guv in CT may be in jeopardy.
To announomous said.
ReplyDeleteI am checking your nimbers to see if your right and even if you were it pales in comparison to the US CofC for sure.
Your assertion that Unions use DUES dollars and FOCE members to pay for political means is a FLAT OUT LIE.
It's actually against the law to use dues dollars for campaign donations. Those PAC dollars come from members that VOLUNTARILY fill out donation cards for the express purpose of using those donations for political purposes.
Does corporate america do the same with investers dollars????
No they don't!!! They are allowed to use dollars $4billion in the last cycle that could have been dividends for stock holders to funnel that money into the GOP.
Next time your going to straighting me out check the laws first.
Just 2 weeks ago in the 2nd CD one of the candidates that ran for the GOP in the summer primary made the same erronious statement. She was straightened out right quick.
Last night I met a tea party guy at the govs forum in Meriden that was promoting the same LIE.
When you outspend the other side 40-1 wouldn't it seem at least a little fair yo fight with facts???
As for the title of most corrupt Gov in History thats Johnny boys for the forseeable future. The only thing that saddened me is the tax payers deserved a trial that would have exposed all involved and would have put Johnny away for 10+ years instead of the sweetheart year and a day he got.
To "Announomous"- Wow, no need to go to Disneyland with those thoughts banging around, eh? No dues going to the Dem candidates? Google it if you will.You are correct though, it is against the law to use dues money for campaigns-but it is done. And you will read about union members who are "strongly urged"(more like strong-arm urged) to donate to the candidate of the Union's choice.
ReplyDeleteAnd it was 2-1, not 40-1, but I will concede the most corrupt Guv contest to your choice. See, I'm fair and balanced!
Bank of America does evade taxes legally. They have fancy accountants and lawyers that help them evade taxes. The rest of us pay for the services that they use in our communities to make profit. They use our roads, police, fire department, etc... Regular working people cannot evade taxes because we would be put into prison. We need to close the corporate loop holes which allow tax dodging.
ReplyDeleteSo how come Obama doesn't execute an "executive order"close the loopholes?
ReplyDeleteFor the same reason he couldn't close Guantanamo Bay like he promised he would. Remember that was one of his top priorities, right after he "lowered the seas" and stopped global warming?