We all know how bad Wal Mart is for America, despite claims to the contrary by the company itself and even some politicians, but let’s take a look at specifically how they’re short changing Virginia, shall we?
Wal Marts operating in Virginia owe at least some of their success to Delegate Tim Hugo (R-Centreville) and his overwhelmingly Republican sub-committee who continue to allow Wal Mart to take advantage of a tax loophole that allows the company to pay rent to itself and write it off as an expense!
According to an article in The Daily Press, six states have already closed this loophole or are in the process of doing so. So why hasn’t Virginia followed!?
Six more states either have closed, or are in the process of closing, this tax loophole — six more states that can thank Virginia for the cost-savings their consumers reap along with the added corporate tax revenue in their state coffers.
So here’s a question for Delegate Hugo: Why do you continue to oversee a sub-committee that allows Wal Mart to strip Virginia of, at bare minimum $6.3 million in a time of such economic hardship? Why do you continue to let Wal Mart rob the Commonwealth when we’re already dipping in to the state’s rainy day fund (thank you Mark Warner, by the way!)??
Wal-Mart doesn’t rent its buildings, of course. It owns them, but through a special subsidiary that rents them to another subsidiary that runs stores. No cash changes hands; one subsidiaries account is debited; another’s is credited. But by such a setup, Wal-Mart is able to reduce the taxes it pays in Virginia.
And how does Wal Mart defend itself?
Wal-Mart’s defense is that it passes any savings on to customers. Follow that logic, and the state should give tax breaks to all retailers, car dealers, home sellers, banks and everyone else who charges citizens, on the assumption that they’d pass on the savings. Carried to its conclusion, this kind of thinking would exempt all commercial activity from taxes and put the entire burden of financing government on individual taxpayers. That doesn’t make sense.
And finally, here’s a look at just what Virginia could do with that extra $6.3 million which is again, a BARE MINIMUM estimate:
Even if the lawmakers are leaving just $6.3 million on the table by preserving this loophole — though the total may be much higher — that amount would pay for 100 teachers. Or 50 police officers plus 50 investigators to track down child pornographers on the Internet. Or full scholarships so 2,500 people from working-class families could go to community colleges. Or mental health care for thousands of returning combat veterans. Or upgrades to a couple of sewage treatment plants to cut the pollution they put into rivers.
Or just a little break for the ordinary, not-so-well-connected taxpayers of Virginia.
I personally refuse to shop at Wal Mart, and have written extensively as to why, but we can no longer call for the company to turn itself around because it is clear (and has been clear for some time now) that they are not going to do so. It’s time for our representatives to stand up to Wal Mart and tell them to stop screwing over Virginia and the rest of America!!
[Cross posted on Daily Kos and Democratic Central]
