Home > globalization, jobs > What’s a U.S. corporation?

What’s a U.S. corporation?

from David Ruccio

It used to be that a U.S. corporation had its headquarters in the United States, paid U.S. taxes, and employed mostly U.S. workers.

Not anymore.

Now, while they still may have their headquarters officially located in the United States, they don’t pay much in the way of taxes, and many of the jobs they’re creating are overseas. In fact, they no longer even report the mix of U.S. and foreign jobs, even as they clamor for a tax holiday. 

Some of the country’s best-known multi­national corporations closely guard a number they don’t want anyone to know: the breakdown between their jobs here and abroad.

So secretive are these companies that they hand the figure over to government statisticians on the condition that officials will release only an aggregate number. The latest data show that multinationals cut 2.9 million jobs in the United States and added 2.4 million overseas between 2000 and 2009.

Some of the same companies that do not report their jobs breakdown, including Apple and Pfizer, are pushing lawmakers to cut their tax bills in the name of job creation in the United States.

Maybe it’s time we made them U.S. corporations again, by allowing American workers—together with their foreign counterparts—to actually run the operations.

  1. August 24, 2011 at 3:21 pm

    How about full disclosure of not just jobs by country of operation, but also wage rates, profits etc.

  2. August 24, 2011 at 3:25 pm

    How about giving the “corporate elite” picks and shovels and let them do some real work?

  3. August 24, 2011 at 3:26 pm

    Forcing companies to be worker’s co-oops would confiscate the investors’s equity and eliminate much of investment. Corporations flee and avoid US taxes. The problem is taxes. Why not fix the cause?

  4. Podargus
    August 24, 2011 at 8:40 pm

    Multinationals are just a symptom of one of the fundamental problems – a religious devotion to free trade,globalization,deregulation and privatization.

    The USA has effectively doped itself out of the race.

    Fred Foldvary,it is the appallingly ignorant,short sighted and self interested like you who are part of the problem,not the solution

    • Alice
      August 24, 2011 at 10:08 pm

      Agree Podargus – returns from globalization forever is a figment of our imagination. Globalization is just an expansionary phase in the long term business cycle, Its disntegrating now. Does anyone think the quantitative easing is anything less than a dollar devaluation (something thats good for the US but unfortunately cant be used by Greece, Spain or Italy?) Ahhh lets just see how te euro free trade global model fares now?
      The economy is so much bigger than the current religious faith of some its economists and politcians. It has a way of making them eat their own models.

  5. charlie
    August 24, 2011 at 8:50 pm

    it is the entrenchment of the lie that corporations are people, citizens …. do corporations abuse the privilege and responsibility of citizenship? or only the right to profit maximization?

  6. Jeff Z.
    August 25, 2011 at 3:26 pm

    Corporations by default evade the other responsibilities of citizenship since they are not really people. They take the legal form of people because it gives them some advantage. No corporation as such ever technically voted nor served on a jury. However, they do act as kingmakers in the U.S. simply because election campaigns in U.S. require so much money to run. They expect to extract their pound of flesh from whichever candidates are elected into office.

    Fred has a point about the transition to co-ops. Banks like to know that they are dealing with people that can speak for the company they represent, which is one reason why co-ops have problems raising funds for investment.

    I would point out that workers are also investors in their enterprises – either through the work that they do, or more formal mechanisms like employee stock ownership plans. These formal mechanisms don’t amount to much compared to a normal division between investors and workers when considering both control of operations and compensation. Viewed this way, a cogent argument can be made that a great deal of the workers ‘investments’ in their enterprises has been confiscated because wages haven’t kept with productivity for four decades or so.

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.