McD's and Wellfare

     On this morning's news, NYS Governor, Andrew Cuomo reported specifically about McDonald's.  His voice relayed the weight of the figures: McDonald's pays its employees minimum wage; their employees are below the poverty level; thus, their employees qualify for Welfare.  Then, Cuomo reported that NYS spends $700 million in Welfare for McDonald's employees, while McDonald's makes $4 billion.

!!!!!!!!!!!!

     It's no surprise that a company which got its start by laying off its waitstaff, and uses lowest-grade "treated" "beef product" from questionably-managed animals chooses not to pay its employees beyond the legal wage.  Due to government subsidies, the company can offer Dollar Menu items, thus having their non-nutritious food products cost less than fresh fruits/vegetables.  Hence, it attracts minimum wage people as customers.  

     Their American customer pays the company for the non-nuturious food, then allows their taxes to be used to subsidize the income of the company's employees!  According to the Washington Examiner, NYS spends 32% of its annual budget on Welfare.  That's approximately $25 billion.  

     So, when roads aren't fixed, school programs are removed, library funding is cut, gov't salaries are frozen, and public works are stymied... you can attribute $700 million tax dollars going to help McDonald's employees.  

     McDonald's pays one of the highest corporate taxes, 31.3% in America, yet it still enjoys annual profits of $8 billion, and its stock price soared 122% over the past five years.  Yet, its CEO, Jim Skinner--who got paid $17.5 million (on paper) in 2009--asked American legislatures for tax breaks.

     At the same time, McDonald's uses a "excess stock options" tax break to write off the value of stock options awarded to their executives as part of their compensation.  Such corporate tax breaks (for all such participating companies) cost $180 billion in annual lost revenue to America.  Even Facebook got rid of its entire tax liability by using this one loophole.  Those companies are taking a tax deduction for money that they're not really spending.  

     In February of this year, the British Daily Mail reported that McDonald's was accused of dodging L700 million in Europe.  With an offshoot called McD Europe Franchising Sarl, they funneled the money through the Grand Duchy of Luxembourg, which is a tax haven.  The grand duchy allows companies to pay as little as 1% tax on income.  McD's Luxembourgish entity reported revenues of $2.7 billion (2009-2013), but paid less than $12 million in taxes.  If not for that loophole, it would've paid 60 times more.  It also shifted its European headquarters from London to low-tax Geneva, which saved the company $818 million, during that time.  Thus, the company avoids paying taxes where it sells its goods and where it collects its franchise fees.

     In March of this year, McDonald's fired its CEO of three years: Don Thompson.  But, they're still paying him $3 million to "consult" them for the rest of this year.  Add that to his $27.4 million total compensation from 2011-2013.  Thompson probably collected $40 million, since accepting the job.

     A "mom & pop" eatery might not pay much, but a global brand/mulit-billion-dollar company can.  Especially when it chooses to sponsor so many publicity-garnering events (and funds a charity).  McDonald's reply to the Governor was that if it had to pay higher wages, it would increase prices or cut back on staff.  They'd rather do that than pay anything above minimum wage.