How Much Does Democracy Cost? You Can’t Afford it

Today, representatives from CWA, Citizen Action of New York, PEF, New Yorkers for Fiscal Fairness, SEIU 1199, Capital District Area Labor Federation, WFP, AQE and Capital District residents, faith and labor leaders rallied outside of Verizon buildings in Buffalo, Albany, and on Long Island to protest the hugely profitable corporation’s use of tax loopholes to avoid paying its fair share in taxes while working families struggle. The protesters demanded that leaders in state government work to close these corporate tax loopholes that companies like Verizon use to make massive profits at the expense of taxpayers.

Recent research was released at the demonstration, hilighhting the fact that Verizon reported more than $33 billion in profits between 2008 and 2010. They donated almost $2 million to political candidates at the federal level, spent $33.8 million in accounting fees, and paid its top 6 executives $46 million in compensation. In 2011, the corporation spent $16.6 million on lobbying at the federal level.

During this time, however, Verizon only paid an average state corporate income tax rate of 2.6%. Compare that to the income tax rate for a New York family of four making $58,000 a year, which is 4.1%. If Verizon adhered to this rate, they would have paid an additional $1.5 billion in state taxes during this period.

Demonstrators carried blown up W2 tax forms to show the injustice created by the corporate tax loopholes that Verizon uses to avoid paying its fair share. After demonstrating outside of the Verizon building, protesters brought the W2s to the offices of area legislators, calling on them to put an end to these loopholes and the shopping mall that politics have become.

We asked the question, “how much does democracy cost?” The answer, in reality, is more than 99% of families can afford. Only mega-rich CEOs and big corporations can afford exorbitant campaign donations cementing the tax loopholes that they enjoy.

Quoted at the rally:

“Instead of attacking workers and the poor we need to refocus our state’s priorities and ask companies like Verizon to pay their fair share in taxes. Verizon is making billion in profits and paying nearly nothing in corporate income taxes while at the same time squeezing its workforce for every dime they can get out of them. We need to close the corporate tax loopholes that allow companies like Verizon to pay a lower tax rate than the average family of four in NYS,” said Ron Deutsch, Executive Director of New Yorkers for Fiscal Fairness.

“Verizon’s exorbitant use of accountants and lobbyists, and hefty campaign contributions, are evidence that they know how to take advantage of tax loopholes that are left open by our legislature and that they can use New York’s campaign finance system to ensure those loopholes stay open,” said Mark Emanatian, Citizen Action of New York’s Capital District Organizer. “Across New York, the 99% are calling on Verizon to be better contributors to our communities by paying their fair share in taxes.”