Mercury Rising 鳯女

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The tax grift

Posted by Charles II on May 20, 2014

Citizens for Tax Justice:

American Fortune 500 corporations are likely saving about $550 billion by holding nearly $2 trillion of “permanently reinvested” profits offshore. Twenty-eight of these corporations reveal that they have paid an income tax rate of 10 percent or less to the governments of the countries where these profits are officially held, indicating that most of these profits are likely in offshore tax havens.

While congressional hearings over the past few years have focused attention on the tax avoidance strategies of technology corporations like Apple and Microsoft, this report shows that a diverse array of companies are using offshore tax havens, including U.S. Steel, the pharmaceutical giant Eli Lilly, the apparel manufacturer Nike, the supermarket chain Safeway, the financial firm American Express, and banking giants Bank of America and Wells Fargo.

These 28 companies are not alone in shifting their profits to low-tax havens—they’re only alone in disclosing it. A total of 301 Fortune 500 corporations have disclosed, in their most recent financial reports, holding some of their income as “permanently reinvested” offshore profits. At the end of 2013, these permanently reinvested earnings totaled a whopping $1.95 trillion.

The only way to have both balanced budgets and low taxes on the middle class is to tax deadbeat corporations. Everyone else, especially those many corporations which do pay taxes (notably, corporations whose operations are all in the US), should be in favor of this.

4 Responses to “The tax grift”

  1. jo6pac said

    This sad and the problem goes back to the citizens so-called elected officials that rewrite the laws that allow this to happen. Then again if there some way to remove the money from campaigning we the citizens might have a small chance to be middle class. There is a whole list of things that need change like this and close the revolving door of govt./corp. I doubt I will see this happen in my life time living in the surveillance state that we live in.

    • Charles II said

      I dunno, Jo. The surveillance state is not working, as anyone who studied East Germany could have predicted. From what I read in Syeed Shahzad, if he’s right, the empire’s days are numbered. At what point will average Americans figure out they’re being lied to?

      • jo6pac said

        I agree I just hope Amerika goes out with a whimper and not take down every one with us. Then again knowing who is in control I doubt I’ll get my wish.

      • Charles II said

        It’s not America that needs to go down, Jo. It’s this silly idea of empire.

        As for the country itself, I continue to be amazed at how many people maintain hope, a sense of fairness, and a desire to see everyone–even non-Americans– succeed. One has to see how screwed up things are in other countries to gain an appreciation for the fact that we are one of the better ones.

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