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E-mail: editor@dailyemerald.com
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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
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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.