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Wall Street Titans Poised to Reap $28 Billion From a Single Provision of Senate Tax Bill
Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo Are Among the Big Banks Republicans Would Reward for Hoarding Profits Abroad
WASHINGTON
The tax holiday proposal supported by President Donald Trump and congressional Republicans would give nine top finance corporations a $28 billion tax break, a new report from Public Citizen and the Institute on Taxation and Economic Policy (ITEP) reveals.
Under the U.S. Senate version of the bill, corporations that use tax shelters abroad are offered a deeply discounted tax rate of 10 percent (from 35 percent) in an attempt to lure the corporations to bring their profits back into the U.S.
The nine big banks collectively hold more than $172 billion offshore, much of which is booked to their 2,270 tax haven subsidiaries across the globe.
Among finance corporations, the greatest share of offshore profits and potential tax savings would be enjoyed by Citigroup, which holds an estimated $47 billion in 137 offshore tax haven subsidiaries. The value of the proposed tax holiday for Citigroup is an estimated $9.3 billion.
The second and third biggest Wall Street beneficiaries would be JPMorgan Chase and Goldman Sachs.
"Why in the world should taxpayers reward Wall Street for evading taxes?" said Robert Weissman, president of Public Citizen. "What we need is not a tax holiday but a holiday from Wall Street's scams. The booming banks on Wall Street should pay what they owe, with no inducements, holidays or discounts."
"Years after receiving billions in taxpayer bailouts, Wall Street companies are set to receive billions more in tax breaks from the Senate repatriation proposal as a reward for their offshore tax avoidance." said Matthew Gardner, a senior fellow at ITEP. "This bill would allow these companies to avoid paying over two-thirds of the $40 billion they have avoided on the earnings they have booked offshore."
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
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In 14-1 UN Security Council Vote, Lone US Veto Kills Gaza Cease-Fire Resolution
The U.S. government, said one human rights lawyer, "proves once again to the world that it is fully committed to the continuation of the genocide in Palestine."
Nov 20, 2024
The Biden administration faced fierce criticism on Wednesday after using its veto power at the United Nations Security Council to block a resolution demanding an immediate, unconditional, and permanent cease-fire in Israel's assault on the Gaza Strip.
The vetoed measure also called for all parties to implement a U.N. Security Council (UNSC) resolution passed in June—which would lead to the release of all hostages—and to enable Gaza civilians' immediate access to basic services and humanitarian assistance.
Jess Peake, who directs the International and Comparative Law Program at the University of California, Los Angeles, condemned the U.S. decision as "absolutely unforgivable" while Nina Turner, a senior fellow at the Institute on Race, Power, and Political Economy, declared that "this is absurd."
Mai El-Sadany, executive director of the Tahrir Institute for Middle East Policy in Washington, D.C., called it "yet another shameful abuse of the UNSC veto by the U.S. to perpetuate a war that violates U.S. law and U.S. international legal commitments."
"Today's message is clear to the Israeli occupying power—you may continue your genocide... with complete impunity."
Human rights attorney Craig Mokhiber, who last year resigned as the New York director for the Office of the High Commissioner for Human Rights over the United Nations' response to Gaza, said Wednesday that "the U.S. has just vetoed another cease-fire resolution in the U.N. Security Council, and, in doing so, proves once again to the world that it is fully committed to the continuation of the genocide in Palestine."
Mokhiber also called for action at the United Nations General Assembly (UNGA), where there is no U.S. veto power.
"Even as we seek accountability for Israeli perpetrators, we must also seek accountability for complicit U.S. actors," he said. "Israeli/U.S. impunity threatens the entire world. And the U.N. must now move to take concrete action in the UNGA."
The 14-1 vote at the UNSC marked the fourth time the United States has blocked a Gaza resolution since Israel began its retaliation for the Hamas-led October 7, 2023 attack. All five permanent members of the Security Council—the U.S., the United Kingdom, Russia, France, and China—have veto power. The other seats are filled on a rotating basis and lack that authority.
The 10 nonpermanent members—Algeria, Ecuador, Guyana, Japan, Malta, Mozambique, Sierra Leone, Slovenia, South Korea, and Switzerland—were behind the push to pass this draft resolution. Those who supported it represent "the collective will" of the international community, Algerian Ambassador Amar Bendjama said after the vote, according toU.N. News.
"It is sad day for the Security Council, for the United Nations, and the international community as a whole," Bendjama said, stressing that it has been "five months since the adoption of Resolution 2735, five months during which the Security Council remained idle—remained hand-tied."
"Today's message is clear to the Israeli occupying power—you may continue your genocide... with complete impunity. In this chamber—you enjoy immunity," he added. "To the Palestinian people, another clear message—while the overwhelming majority of the world stands in solidarity with your plight, others remain indifferent to your suffering."
Israel faces a South Africa-led genocide case at the International Court of Justice over its assault on Gaza, which as of Wednesday has killed at least 43,985 Palestinians, according to local officials. Another 104,092 people have been wounded, and most of the enclave's 2.3 million residents have been repeatedly displaced as Israeli forces have devastated civilian infrastructure.
U.S. Ambassador Robert Wood said Wednesday that "we made clear throughout negotiations we could not support an unconditional cease-fire that failed to release the hostages."
"This resolution abandoned that necessity," he argued. "For that reason, the United States could not support it."
The U.S. government has been widely accused of complicity in genocide for arming Israeli forces over the past 13 months—including by progressives in Congress. Sen. Bernie Sanders (I-Vt.) on Wednesday planned to force a vote on resolutions that would block American weapons sales to Israel on the grounds that they violate federal law.
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Trump Nomination of Crypto Banker Howard Lutnick Another 'Win for the Billionaire Class'
"Just another reminder that Trump serves the oligarchy, not the people," said former Labor Secretary Robert Reich.
Nov 20, 2024
Consumer advocacy group Public Citizen feigned surprise on Wednesday over President-elect Donald Trump's nomination of Wall Street CEO Howard Lutnick to lead the U.S. Department of Commerce.
"Oh look, another billionaire has made his way into Trump's Cabinet," said the group, noting Lutnick is also a promoter of cryptocurrency and a Trump megadonor. "The conflicts of interest are almost too many to count."
Among the conflicts are Lutnick's involvement in the crypto industry and federal and state cases against Cantor Fitzgerald.
In addition to running the Wall Street firm, Lutnick is a banker for the "stablecoin" company Tether; purchasers receive a Tether token for $1, with the proceeds invested in reserves and Treasury bonds managed by Lutnick's Cantor Fitzgerald.
As Public Citizen noted, New York Attorney General Letitia James found in 2021 that Tether and another crypto firm "recklessly and unlawfully covered up massive financial losses to keep their scheme going and protect their bottom lines."
The company is also reportedly under federal investigation over alleged criminal violations of anti-money laundering rules and sanctions.
Public Citizen also said that while co-chairing Trump's transition team, Lutnick "may also have helped arrange a meeting between Trump and Coinbase chief Brian Armstrong," who "helped steer a record amount of political spending from the crypto industry into the 2024 election."
Crypto firms poured over $119 million into directly influencing the 2024 federal elections, Public Citizen found in August, making the industry's spending second only to that of fossil fuel companies.
As Politico reported in October, even other members of Trump's inner circle have accused Lutnick of using his transition team co-chair position to take meetings on Capitol Hill and "talk about matters impacting his investment firm, Cantor Fitzgerald—including high-stakes regulatory matters involving its cryptocurrency business."
Lutnick's nomination, said former Labor Secretary Robert Reich, serves as a reminder that "Trump serves the oligarchy, not the people."
"Debris from crypto's political spending tsunami will jam up more halls in Washington than ever before if Lutnick is confirmed as secretary of commerce," said Bartlett Naylor, a financial policy advocate for Public Citizen. "The president-elect, who once correctly called bitcoin a scam, now surrounds himself with even more crypto enablers. Cryptocurrency won't return good jobs to the heartland or reduce food prices; it will only thin the wallets of those vulnerable to a now government-legitimized con."
Government watchdog Accountable.US pointed to more than $19 million in political donations Lutnick has made since 2009, nearly all of which went to GOP candidates and political action committees. He contributed $6 million to Trump's super PAC, Make America Great Again, Inc., in 2024 alone.
"Howard Lutnick's questionable qualifications to lead the Department of Commerce begin and end with his loyalty to the president-elect," said Accountable.US executive director Tony Carrk.
Tether isn't the only Lutnick-linked company that's been investigated for wrongdoing. The Securities and Exchange Commission fined Cantor Fitzgerald $1.4 million in 2023, saying the company repeatedly failed "to identify and report customers who qualified as large traders." The company also agreed to pay $16 million in fines to the SEC and the Commodity Futures Trading Commission in 2022 for using unauthorized communication channels.
Should Lutnick be confirmed as commerce secretary, Accountable.US said a "major regulatory conflict" could arise due to a dispute between the BGC Group, a spin-off brokerage of Cantor Fitzegerald, and futures and commodities exchange CME Group, over a competing trading platform BGC Group is launching.
"Lutnick's company's violations resulting in financial regulator fines and millions in right-wing political donations shows that political devotion takes precedence over actual experience to do the job in Trump's Cabinet," said Carrk.
Trump campaigned as a champion of working people as he railed against high grocery prices. As The New Republicreported on Tuesday, Lutnick has showered Trump's plan for across-the-board tariffs with effusive praise—even as leading economists warn the plan to impose tariffs on foreign imports will pass higher costs onto consumers, not foreign countries.
"In September, Lutnick told CNBC that 'tariffs are an amazing tool for the president to use—we need to protect the American worker,'" wrote Edith Olmsted. "Lutnick also gushed about tariffs at Trump's fascistic rally in Madison Square Garden last month, claiming that America was better off 100 years ago, when it had 'no income tax and all we had was tariffs.' His high praise for tariffs came even as he admitted Americans would face higher prices as a direct result."
Lutnick's nomination, said Sen. Elizabeth Warren (D-Mass.), "is a win for the billionaire class at the expense of working people."
"The across-the-board tariff plan," she said, "is a distraction from the MAGA scam to extend tax giveaways for giant corporations and billionaires like Howard Lutnick."
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'Inconceivable': US Condemned Over Decision to Provide Landmines to Ukraine
"Ukraine already faces years of demining due to Russian landmine use," said the International Campaign to Ban Landmines. "Adding to this contamination would impact its own population for decades to come."
Nov 20, 2024
The Biden administration's decision Tuesday to reverse its own policy and greenlight the provision of anti-personnel landmines to Ukraine drew international condemnation, with human rights organizations warning that generations of civilians will bear the costs of the move.
The International Campaign to Ban Landmines (ICBL), which won the Nobel Peace Prize in 1997 for its work against the weapons, said Wednesday that it "strongly condemns" the Biden administration's move and noted that Ukraine is prohibited from acquiring or using landmines under the terms of the Convention on the Prohibition of the Use, Stockpiling, Production, and Transfer of Anti-Personnel Mines and on Their Destruction.
Neither the United States nor Russia—which has used landmines repeatedly against Ukraine since its full-scale invasion in February 2022—are signatories to the treaty. But in 2022, the Biden administration barred the transfer and U.S. of American-made landmines except in defense of South Korea, reversing a Trump-era policy that weakened restrictions on the weapons.
"The U.S. must respect its own policy prohibiting landmine transfers," ICBL said Wednesday. "As the world's largest donor to mine clearance, spending millions annually to protect civilians, it's inconceivable the U.S. would facilitate laying new mines."
"Ukraine has repeatedly affirmed its commitment to the Mine Ban Treaty since 2022. ICBL urges Ukrainian officials to demonstrate this commitment by refusing this transfer. International humanitarian law cannot be set aside during conflict," the organization added. "Ukraine already faces years of demining due to Russian landmine use. Adding to this contamination would impact its own population for decades to come."
ICBL implored the administration to reverse its decision, saying that "the protection of civilians cannot be compromised, even in extraordinarily difficult circumstances."
It's unclear when U.S. landmines will be shipped to Ukraine, which is already littered with landmines that, at the current pace, will take an estimated 757 years to remove. An unnamed official toldDefense News that the U.S. landmines would be delivered to Ukraine "soon."
On Wednesday, the Biden administration announced a fresh package of military assistance for Ukraine that includes mortar rounds, artillery ammunition, and "demolitions equipment and munitions." The package was announced hours after Ukraine fired American-made long-range missiles deep into Russian territory for the first time in the wake of U.S. President Joe Biden decision to allow Ukrainian forces to do so.
"Anti-personnel landmines are inherently indiscriminate weapons that maim and kill civilians long after conflicts end and shouldn't have a place in the arsenal of any country."
Speaking to reporters Wednesday, U.S. Defense Secretary Lloyd Austin said that Ukraine has "asked for" anti-personnel landmines.
"So I think it's a good idea," Austin said of the administration's decision to roll back its 2022 policy.
Ben Linden, advocacy director for Europe and Central Asia for Amnesty International USA, expressed strong disagreement, saying in a statement that the decision was "reckless" and "a deeply disappointing setback for a president who once agreed that landmines put more civilians at increased risk of harm."
"It is devastating, and frankly shocking, that President Biden made such a consequential and dangerous decision just before his public service legacy is sealed for the history books," said Linden. "Anti-personnel landmines are inherently indiscriminate weapons that maim and kill civilians long after conflicts end and shouldn't have a place in the arsenal of any country. Even the 'nonpersistent' mines are a threat to civilians. In the face of continued Russian aggression, including the killing and injuring of Ukrainian children, landmines are not the answer to keep civilians safe."
News of the Biden administration's decision came shortly before ICBL issued its annual report on anti-personnel landmines and their impacts worldwide.
The 142-page report found that "there were at least 5,757 new casualties from landmines and explosive remnants of war in 53 countries and two other areas in 2023, including 1,983 deaths."
"Civilians made up 84% of all recorded casualties in 2023," the report noted, "while children were 37% of casualties when the age was recorded."
Mark Hiznay, associate arms director at Human Rights Watch and an editor of the report, said in a statement that "new use of anti-personnel mines by countries that have not joined" the international mine ban convention "threatens both civilian lives and the effectiveness of this lifesaving treaty."
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