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Obama instituting mafia like protection rackets for corporate backers.


The left-wing is growing more furious as Obama showers his corporate backers with special privileges, tax credits, and exemptions from his new regulations. Meanwhile, smaller competitors are being hit with higher taxes and new regulations to drive them out of business. Even tiny commercial operations, like Amish people selling milk, and being persecuted and put out of business by Obama’s goons.

From Huffington Post…

All told, these 10 CEOs with Obama connections brought in over $158 million for themselves last year. Their companies’ federal tax bill, however, was a combined net benefit of $5.4 billion — meaning the federal government actually owed these companies billions of dollars. Eight of the 10 firms not only did not pay taxes; they received large refunds. The 10 companies scored combined U.S. profits of $26.8 billion.

HuffPost’s calculations are based on data compiled in the report by the IPS. The IPS figures, in turn, are drawn from documents the companies filed with the Securities and Exchange Commission.

Obama has repeatedly spoken of improving the corporate tax code by closing special loopholes for politically connected companies and using that money to lower the official corporate tax rate. President Ronald Reagan embarked on a similar project in 1986, enabling the federal government to increase tax revenues even as it lowered the formal tax rates. Although corporate tax revenue is at postwar lows, Obama’s plan is much less ambitious: He doesn’t want to actually increase tax revenues at all. The benefits from closing loopholes would exclusively flow straight to other corporations.

But Obama has given several of the executives who benefit most from the current system prominent economic advisory positions. The Obama administration declined do comment for this story.

Of Obama’s corporate favorites, General Electric CEO Jeff Immelt and Honeywell CEO David Cote have served in the highest-profile public positions associated with the administration. Immelt has been pilloried with criticism ever since Obama named him head of his Council on Jobs and Competitiveness. GE required massive amounts of government aid when the subprime mortgage bets made by its financial wing, GE Capital, resulted in enormous losses during the financial crisis. While the company is headquartered in the U.S., a majority of its employees are based abroad (GE is somewhat unique among major companies for disclosing this figure, a fact Immelt has touted in recent speeches), and it has a robust staff of former U.S. Treasury officials who deploy complicated accounting maneuvers to lower the company’s tax bills. Immelt made $15.2 million last year, with GE’s $3.3 billion tax benefit accounting for more than half of the 10 companies total tax benefit.

Cote has received far less public scrutiny than Immelt, although he may have greater influence over U.S. economic policy. Obama named Cote to a previous super-committee on economic policy, the National Commission on Fiscal Responsibility and Reform, known as the Simpson-Bowles panel. An Obama nominee, Cote was the second-ranking Republican on the Commission, behind former Sen. Alan Simpson. Once derided by liberals as an obsessively conservative approach to cutting the deficit, the Simpson-Bowles panel’s recommendations have increasingly been used by congressional Democrats to fend off more radical proposals from Rep. Paul Ryan (R-Wis.) and the Republican leadership. Cote scored $15.2 million in pay last year, while Honeywell secured a $471 million tax benefit. Honeywell told HuffPost that it complied with tax laws and that its executive pay standards are guided by executive performance. The company also said it is proud of Cote’s government work.