Ohio grandma rages at corporate tax hypocrisy

[Omaha Steve]

http://www.pww.org/article/articleview/9779/1/338

School boards usually lack the power to protect their tax base from corporate giveaways

A tiny grandmother from Toledo named Charlotte Cuno stood on the steps of the U.S. Supreme Court last March, enraged by questions the justices asked her lawyer.

Her lawsuit, Cuno v. DaimlerChrysler, sought to cancel much of a $281 million subsidy package Toledo and Ohio gave the auto company for a new plant. But the justices’ questions made it clear they were likely to rule against her on a technicality: that she was not harmed enough — and therefore lacked “standing” — to be heard in federal court.

“I have three grandchildren in Toledo public schools,” she said. “Their teachers have not had a raise in seven years. Each school only has two computers. How can they tell me I have not been harmed?”

In her grandmotherly rage, Cuno crystallized the corporate hypocrisy on jobs and taxes in America today. One moment, corporate lobbyists bemoan the poor skills of high school graduates and insist they must outsource offshore. The next moment, they defend massive “economic development” subsidies that often mean companies pay no property tax or income tax for a decade or more.

When large corporations dodge their taxes, only two things can happen. Either everyone else’s taxes go up, or the quality of schools and other public services goes down, or some of both. For the last 25 years in America, we’ve had lots of both, and that’s how Cuno’s grandchildren got an impoverished school and working families got higher taxes.

Luckily, a growing coalition of labor, community groups, tax watchdogs and environmentalists is pushing back. They’ve been joined by two of the nation’s largest unions — the 2.8-million-member National Education Association and the 1.3-million-member American Federation of Teachers.

The NEA’s board of directors has made tax reform, including economic development tax breaks, a priority issue for the next two years. AFT’s last convention passed three strongly worded tax reform resolutions. Already in many states, NEA and AFT affiliates have supported economic development reform efforts.

The educators’ decision to join the debate could not be more timely. In just two years the mass retirements of the “baby boom” generation — 76 million Americans — will begin. Already, many industries, including health care, manufacturing, aerospace and utilities, report moderate to severe shortages of skilled labor, and many professions are especially “gray.”

To compete globally — and just to replace the boomers — we must make massive new investments in education and training. Instead we get underfunded schools like those in Toledo.

FULL story at link above.

[wicket]

1. What an amazing woman

K & R

[ACK]

2. Corporate welfare is the most important economic issue of our time

$85 billion dollars a year in the federal budget was the last estimate I have seen.

How the hell could you fund new programs, lower the deficit and still cut direct income tax rates all in one shot?

Eliminate the corporate welfare.

[gratuitous]

3. Not harmed "enough"?

Peculiar reading of the law for a judge -- any judge. "Well yes, plaintiff, you've suffered a specific harm and quantifiable damage, but in my opinion, it's not enough damage to sustain a cause of action at law. Dismissed."

[razors edge]

4. unfortunatly it is being used more and more

I live in Toledo (East Side) and my property taxes have doubled in the last five years.