CORPORATISM - LOOKING GLASS NEWS
View without photos
View with photos


Wal-Mart's Business Plan
from judicial-inc.biz
Entered into the database on Wednesday, June 29th, 2005 @ 15:10:17 MST
 

Untitled Document

 

"Let the American taxpayer fund our expenses"

 

Wal-Mart is the second coming of the 1920 Robber Barons

 

 

 

Wal-Mart Is The Ultimate Predator

It has destroyed 100,000 small businesses, is breaking the union movement, has shipped massive amounts of jobs overseas, and has the news media in it's pocket. They are a version of the Pullman Company, but much more dangerous.
 

Wal-Mart's Power Is Multiplying

This is like the Andromeda Strain, where it squares itself on a daily basis, becoming more ruthless and powerful. The image of "Sam Walton was just a good old boy" and "Wal-Mart is just a warehouse" is total propaganda. Wal-Mart is peddling the same nonsense the Bolsheviks/Communists used in talking the Russians into destroying their country. Wal-Mart wants you to believe that the company's efficiency, and size, are responsible for the low prices, but that is total BS.
 
 

 

Wal-Mart's price advantage

   

Third World Countries

This girl makes $1.20 an hour. She replaced a Tennessee housewife that made $14.40 an hour, plus health insurance benefits. The housewife paid taxes which paid for local schools.

You may be buying a $25 item for $20, but it is slowly wrecking your economy, and eventually you will be paying full price. Nike shoes pulled the identical scam, when it gave you $22 sneakers for $12, but as soon as they bankrupted their competitors, you were paying full price.

   

 

   

A Look At Wal-Mart's Costs

Wal-Mart does $260 billion in annual sales, and $180 billion of it is the cost of merchandise, and the rest is land, buildings, advertising, etc. Wal-Mart employs a staff of attorneys and accountants, whose sole function is to shift expenses to the Federal, State and local governments aka the tax payer. States pick up health insurance, unemployment taxes, real estate taxes, electrical, bond financing,etc.

They will negotiate a special fee from their electric power supplier, and guess who picks up the tab.
   

 

 

Outsourcing To The Third World Is A Giant Swindle
 
 

 

Income Taxes

  • Most of Wal-Mart's $180 billion in merchandise is not made in America. 60% is from out of the country. Their suppliers may be in America, but the merchandise, or major components, are made offshore. Not only does a supplier get cheaper labor, but there are income tax considerations and lax accounting practices. When you trans-ship a product through a 'No income tax country', you inflate the bill and pay less income tax in the US.

     

The trans-shipping swindle

  
  Made in China  

Inc Tax

 Made in America  

Inc Tax

  
  Pair of sneakers' cost $  6.00   Pair of sneakers' cost $25.00    
  Sold to Cayman Corp $40.00   Sold to US Store $50.00

$3.50

  
  Sold to an US store $50.00

 

 Sold to customer $75.00

$1.50

  
  Sold to customer $75.00

$1.50

    

 

  
      =======     =======  
      $1.50     $5.00  
 

Their Federal Income tax on the sneakers is $1.50 instead of $5.00.
 

 


Nike, which could be considered to be a "baby Wal-Mart", with it's Chinese factories, should show a profit of $9 billion on sales of $13 billion, but strangely it only shows a profit of $1.5 billion. China not only provides cheap prices, but enormous opportunities for scamming thanks to trans-shipping and no accounting regulations.
 

 

The Consumer Swindle
 

When the pair of sneakers leave China, it costs $4.00, but once it enters the 'Sea of Trans-Shipping', and the 'Land of Mystery Expenses', the cost skyrockets to $50.00.

 

 

Employee Taxes

Chinese worker

American worker

       
       
  Base Wage $ 1.20 Base Wage $14.60   = $ 30,300
      F.I.C.A. $    .91   = $   1,800
      Medicare $    .18   = $      363
      Fed Unemployment tax $    .73   = $      350
      State Unemployment tax $    .92  =  $       800
      Paid Vacation $ $    1,680
      State Income tax   $    1,500
      Health Ins $ $     8,000
  Annual cost $ 2,500 Annual cost   $ 42,000
 

 

 
 
 

By outsourcing the production to China, you have avoided $5,250 in taxes that pay for schools, unemployment, Social Security, Medicare and public services.

 
       
 

 

Typical Mayor

Typical incentives Wal-Mart gets

States and political hacks prostrate themselves to get Wal-Mart stores in their areas. They will forego 10 years of state income taxes, five years of property taxes, build the infrastructure (roads and power).

Why will local politicians go along?

A super center can cost $20,000,000, and the average skim is 10%. Whose family owns the land Wal-Mart builds on? You have the general contractor who hires favored subcontractors, and there is lots of room for ghost employees and service contracts. There is the always the next election. The same newspapers, that overlook Wal-Mart's predatory practices, can quickly destroy a political career.

 

 

   

Governors Agree...... "What's good for Wal-Mart is good for my state".

Wal-Mart employees, who are considered under the Federal Poverty level, qualify for special state programs. They get low cost, first class health insurance, paid for by the state.

Unemployment Insurance

Companies must pay unemployment taxes (15% average) on their total payrolls. Wal-Mart has a 40% turnover rate, but their tax rate is miniscule. They document their employees where they won't qualify for unemployment, and the state boards gladly accept their versions.
   

 

   

Wal-Mart's Subcontractors

Janitors, mostly illegal aliens, clean the stores at half the price a $7.85 'Associate' would. When the INS does an occasional investigation, then the sub-contractors quickly go under. But not to worry, for they quickly start life under a new name.

Guess what ~ These 'Low cost workers' wind up sticking five kids in the public school system, and the local hospitals are deluged.
   

 

   

Wal-Mart And Unions

Is the United Food and Commercial Workers union 'Taking a Dive'?

Wal-Mart could be at the bargaining table in a month if the teamsters were serious about holding them accountable, coupled with the help of the popular press pushing public opinion. Wal-Mart employee's union dues would be worth $250 million a year.

Wal-Mart's official union stance. Maybe some lucky officials are looking the other way?
   

 

   

Employee Retirement Plans

The company provides a 401k and profit sharing. They use the employees' pension plans to buy Wal-Mart stock.

 

 
   

 

   

Wal-Mart moves purchasing headquarters
 

 In 2001, they moved their world-wide purchasing headquarters to China.
   

 

   

Health Insurance

Full-time associates wait 6 months, and part-timers wait 2 years for the chance to buy health insurance from Wal-Mart. The states started taxpayer insurance funds for Wal-Mart to cover the time gap. Typical state examples are TennCare, BadgerCare, PeachCare

 
   

 

   

Overtime

As salaried 'Associates aka Comrades', these people can forget about overtime.
   

 

 

What Is Wal-Mart Doing

Wal-Mart facilitates the export of high-paying manufacturing jobs through outsourcing to China. They do it, and their suppliers do it. Because of their pay, and benefit scale, they are hiring illegal aliens. Work for Wal-Mart and you get a Visa, and in two years a 'Green Card', and now Poppa and Momma can come in and get $150,000 heart by-passes. Instead of sending their five kids to school in their home country, the children can now can go to a good public school here. President Bush even has schools providing $45,000 a year teachers so children of illegals can learn English.

The local community floods Wal-Mart with tax breaks. The outsourcing destroys American jobs, and the subsequent taxes. Your schools and communities become third world sewers, and your hospitals sound like a Berlitz class.

But hands down, the biggest scam is Wal-Mart's stock. Billions have been transferred to the Waltons, and their special investors, by the Wal-Mart 401k program, and 220,000 smaller investors.