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About Oregon daily emerald. (Eugene, Or.) 1920-2012 | View Entire Issue (Oct. 15, 2003)
Newsroom: (541) 346-5511 Suite 300, Erb Memorial Union P.O. Box 3159, Eugene, OR 97403 E-mail: editor@dailyemerald.com Online: www.dailyemerald.com Wednesday, October 15, 2003 Oregon Daily Emerald COMMENTARY Editor in Chief: Brad Schmidt Managing Editor: Ian Tobias Montiy Editorial Editor: Travis Willse EDITORIAL College years are a period of discovery, redefinition Ah, die college years. A time to discover new things, re discover old tilings and find out that some things that you thought were true really aren't. It's a time to explore your self in ways that you couldn't — or simply didn't in your earlier, formative years — and to break away from the out line of your parents' track. Like Pleasantville, you can leave (at least some of) the past behind, untethering yourself from its archaic stereo types and the rhythmic grind of high school life. But after sloughing off the dead membrane of the past, you need to decide what your new self will be. Fortunately, you find yourself at college: the intersection of countless avenues of potential self-redefinition. Are you a drama buff, or wanted to write or act in a play in the past, but never had the chance? Check out the Uni versity Iheatre's Pocket Playhouse. Are you a budding politician or just want to help influ ence changes in the University world around you? Hie As sociated Students of the University of Oregon — your offi cial student government — might be a good place to start. Or if you just like staying physically active, continue or just try a sport with Club Sports or the Outdoor Program. Indeed, die university scene is something of a micro cosm of a larger society: It has its own culture, its own val ues — or more accurately, its own collection of individual values — and its own opportunities. And the great part is that, even though it helps, you don't have to be exceptionally great at any of the activities you try. In fact, you don't even have to be good: All you have to do is get off your couch, turn off the television and find something you like on the EMU directory or at the Student Activities Resource center's Web site: http://saro.uoregon.edu. Sure, you could go through four or five years of college doing nothing but waking up on Monday, going to class, maybe going to work, coming home and slogging through your homework or zoning out, sleeping and mindlessly starting die whole loop again on Tliesday. In fact, in many respects, learning about your major isn't the most important part of college: it's learning how to in teract with the real world, and that includes real world peo ple and real world challenges. Check out the Emerald's special Spotlight on Campus sup plement in this issue for some of the coundess ways to get in volved, improve the community and improve yourself. Ultimately, no one but you will pick how you spend your free dme or choose the ways that you try to grow. Only you can define your college experience. Make the most of it eveiy day. EDITORIAL POLICY This editorial represents the opinion of the Emerald editorial board. Responses can be sent to letters ©dailyemerald.com. Letters to the editor and guest commentaries are encouraged. Letters are limited to 250 words and guest commentaries to 550 words. Authors are limited to one submission per calendar month. Submission must include phone number and address for verification. The Emerald reserves the right to edit for space, grammar and style. EDITORIAL BOARD Brad Schmidt Editor in Chief Jan Tobias Montry Managing Editor Aimee Rudin Freelance Editor Ayisha Yahya News Editor Travis Willse Editorial Editor Fixing the loophole The Robin Hood Republicans in the na tional Senate and their fellow ffee-market theologians announced a new devotion to a major jobs package early this month. According to The Hill — a publication that covers Congressional goings-on — this package is expected to create more than 4 million jobs and improve the pop ulace's perception of GOP domestic eco nomic policy. But this package, composed of a "litany of bills" currently sitting in Congress, is beginning to look a lot like other Republi can solutions to economic difficulties: "Let the godlike free market and our busi ness bed-buddies take care of us." In this jobs package, a litde-known bill patriotically dubbed the "Homeland In vestment Act of2003" is likely to be includ ed. This legislation, originally intended for inclusion in the Bush tax cut package, would give American corporations a one year tax break on the "repatriation" of earn ings from their foreign subsidiaries. Currendy, corporations can defer tax es on these earnings until they plan to bring the money back to the United States. If and when they choose to repa triate these funds, they must pay a 35 percent tax. But, the HLA would give corporations a one-time 29.75 percentage point reduc tion in this tax so they can invest in do mestic operations, refund ailing pensions, reduce their debt loads and increase divi dends to shareholders. Proponents of the bill include Oregon Democratic Senator Ron Wyden and Ore gon Republican Senator Gordon Smith, In tel, Nike, Hewlett-Packard and a laundry list of tech firms and pharmaceutical com panies. They all vigorously support this bill as a key piece of economic stimulus. Its au thors claim that this piece of legislation will inject roughly $ 135 billion into the floun dering economy during the first year. But opponents call this type of measure "corporate welfare." They argue that, al though the United States has one of the highest corporate tax rates in the world, the country's businesses don't actually pay JL Joe Bechard Cultural obstetrician at that rate. There are so many tax subsi dies and loopholes that many companies don't even pay taxes at all. According to Business Week, individu als and businesses basically split the tax burden in 1940, but now corporations foot less than 14 percent of die total bill. Citizens for Tax Justice reports that a family with a household income of $30,000 has an average tax rate of 17 per cent. But in 2000, thanks to said subsi dies and loopholes, Enron effectively paid a -39.5 percent tax rate, General Mo tors paid -1.2 percent and WorldCom paid 2.9 percent. Corporate income taxes decreased from 4.1 percent of the total GDP in 1965 to 2.5 percent in 2000. During that same time, corporate taxes in other nations be longing to the OrganisaUon for Economic Co-operation and Development in creased from 2.4 percent to 3.4 percent. This means that the United States now has the eighth-lowest corporate tax rate among the 29 reporting nadons. Will corporate tax breaks sdmulate the economy? Will Peter Pan ever grow up? Let's look at some other trends. The World Trade Organizadon ruled in 2001 that American business' use of tax shelters like Bermuda gives them an un fair advantage in the world market. Si multaneously, U.S. corporations com plained that the high American tax rate dulls their compeduve edge. Proponents of the HLA say this bill will give them the incendve they need to in vest in their domestic operations and will bring their interests back home. But as the government frees up foreign markets even more, there is actually less incentive to remain in the United States. Ralph Nader's CitizenWorks recently re ported that, since 1997, the El Paso Cor poration has started nearly 190 new sub sidiaries in tax havens. Morgan Stanley has 97, Haliburton has increased their number by 50 and even sweet little Sarah Lee added 12 new protected subsidiaries to the company. Add to tax havens the benefits of out sourcing — moving jobs to other, less ex pensive nations — and it really looks like corporate America is slipping both politi cians and the people the mickey. The American Electronics Association reported a loss of 560,000 high-tech jobs in the United States from 2001 to 2002, and, according to the Washington Post, the number of temporary jobs rose al most 600 percent from 1982 to 1998. That number continues to grow today. And look at how badly these companies need the help: Eli Lilly, the pharmaceutical giant that makes Prozac, is not only mak ing our country a happier place; it has more than half of its nearly 30,000 em ployees based in 160-plus foreign coun tries, and it reported 17 percent growth in 2001 Several corporations backing the bill are reporting record profits. Not only does this take valuable tax dollars away from desperate services, but it is re-framing the way we view taxes in this country. No longer are they seen as a necessary and important aspect of social responsibility. Today, taxes are seen as a pox on American progress and a direct threat to individual prosperity. Like Bush's tax cuts for the rich, this leg islation will put more money into the hands of those who don't need it. Multi national companies will serve as the mid dleman, and the American people will have to trust non-human entities to hon or a code of ethics not concerned with profits and the bottom line. Contact the columnist at joebechard@dailyemerald.com. His opinions do not necessarily represent those of the Emerald.
