Tag Archives: tax reform

Stiffing US Taxpayers on ‘Grand Scale,’ Fortune 500 Holding $2.6 Trillion Offshore

“As Congress considers proposals to institute a near zero percent tax rate on profits booked offshore by multinational corporations, the findings in this report should give policymakers pause.”

Written by Jake Johnson, staff writer for CommonDreams. Published 10-17-2017.

“Congress created the loopholes in our tax code that allow offshore tax avoidance and force ordinary Americans to make up the difference,” the new study observes. (Photo: Michael Fleshman/Flickr/cc)

As President Donald Trump and the Republican-controlled Congress intensify their push for massive corporate tax cuts that critics have said would encourage businesses to offshore profits and jobs, a new report published Tuesday by U.S. PIRG and the Institute on Taxation and Economic Policy (ITEP) found that 73 percent of companies on the Fortune 500 list are already taking advantage of overseas tax havens—costing the United States $752 billion in federal tax revenue last year alone.

The new study discovered that, in total, America’s most profitable corporations in 2016 had $2.6 trillion stashed overseas in over 9,000 subsidiaries in various locations, including notorious tax havens like Bermuda and the Cayman Islands.

Clark Gascoigne, deputy director of the Financial Accountability and Corporate Transparency (FACT) Coalition, cautioned in a statement on Tuesday that the Trump-GOP tax proposals would, if passed, make this bad situation even worse.

“As Congress considers proposals to institute a near zero percent tax rate on profits booked offshore by multinational corporations, the findings in this report should give policymakers pause,” Gascoigne said. “The study shows that today’s flawed tax system allows for gaming on a grand scale.”

The PIRG-ITEP analysis makes clear that corporate tax avoidance is both an unnecessary problem—”Congress created the loopholes in our tax code that allow offshore tax avoidance and force ordinary Americans to make up the difference”—and a pervasive one.

At least 366 of the 500 companies on Fortune’s list “operate one or more subsidiaries in tax haven countries.” Furthermore, “30 companies with the most money officially booked offshore for tax purposes collectively operate 2,213 tax haven subsidiaries.”

But the report also highlights the fact that there are several “particularly egregious examples”:

  • Apple, which “holds at least $246 billion offshore, a sum greater than any other company’s offshore cash pile,” would owe $76.7 billion in U.S. taxes if this profit was not overseas;
  • Citigroup, which stashes $47 billion overseas, would owe $13.1 billion in U.S taxes; and
  • Nike, which holds $12.2 billion offshore, would owe $4.1 billion in U.S. taxes.

Richard Phillips, a senior policy analyst at ITEP, argued that in the face of these numbers, Congress should be looking to close loopholes that allow businesses to offshore profits on an enormous scale, not open them even further, as Trump and the GOP have proposed.

“Lawmakers shouldn’t be discussing how to sweeten the pot and give corporations a huge tax break that amounts to a huge financial reward for engaging in bad corporate behavior,” Phillips said.

The PIRG-ITEP analysis outlined several steps that could be undertaken by lawmakers in the place of their attempts to slash taxes, gut the safety net, and further incentivize offshoring.

“To end tax haven abuse, Congress should end incentives for companies to shift profits offshore, close the most egregious offshore loopholes, strengthen tax enforcement, and increase transparency,” the study concluded.

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Trump Tax “Hoax” Would Blow $5 Trillion Hole In Budget Over Next Decade: Analysis

‘The idea that this plan would help average Americans instead of the wealthy and big corporations has been a hoax all along.’

Mick Mulvaney press conference about President Donald Trump’s budget plan. Screenshot: YouTube

By Jon Queally, staff writer for Common Dreams. Published 9-26-2017

Trumpcare may be dead again (for a while at least) on Tuesday, but Republicans now want to get serious about what they call “tax reform,” but which critics are resolute in saying is just a major push to give the nation’s corporation and wealthiest individuals another massive giveaway they don’t need and certainly don’t deserve.

A day ahead of the Trump administration’s scheduled release of what it says will be a “detailed” tax plan, progressive policy groups are again warning the American people not to be fooled by rhetoric as they highlight estimates showing the likely proposal will cost the government trillions of dollars in revenue over the next decade and lead the way towards massive cuts in key social programs that help insulate low-income and working Americans from an economy already “rigged” in favor of the wealthy and powerful. Continue reading

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Corporations Complain Their Taxes So High, But New Study Busts That Myth

Minimum-wage workers can’t afford to rent a one-bedroom apartment, but the GOP thinks it’s massive corporations that need an income boost

By ake Johnson, staff writer for Common Dreams. Published 8-11-2017

According to the Center on Budget and Policy Priorities, corporate profits are “near all-time highs.” Wages for most workers, meanwhile, have been stagnant for decades. (Photo: Jason Hargrove/Flickr/cc)

Corporate profits are up. Wages remain low. And, as always, the richest are angling for ever-lower tax rates.

Only 0.1 percent of full-time workers earning the minimum wage can afford to rent a one-bedroom apartment in any state in the U.S., but judging by their tax agenda, the Republican Party and President Donald Trump appear to feel it is massive corporations and billionaires—not American workers—who need an income boost. Continue reading

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In Major Tax Speech, Paul Ryan Lays Out Plan to Lavish Rich With Tax Cuts

“Paul Ryan is not serious about tax reform. He’s serious about tax giveaways—for millionaires, billionaires, and wealthy corporations.”

By Jake Johnson, staff writer for Common Dreams. Published 6-20-2017

Photo: YouTube

After spending months selling a healthcare plan that proposed kicking millions off their insurance and gutting crucial safety net programs, House Speaker Paul Ryan (R-Wis.) has now shifted his focus to tax reform, where he hopes to provide significant tax relief to the wealthiest Americans.

On Tuesday, after weeks of failing to offer any details on his ambitious plan to permanently overhaul the tax code, Ryan made his first major pitch to the National Association of Manufacturers—a business advocacy group that has in the past received funding from the Koch brothers. Continue reading

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To Ram Through Unpopular Agenda, Trump Urges GOP to Kill Senate Filibuster

Though his proposals have found slim support among the American people, president wants GOP allies to push items through “fast and easy”

By Common Dreams. Published 5-30-2017

President Donald Trump indicated to Republicans on Tuesday that they should ignore widespread voter disapproval of his agenda as he urged them to once again jettison filibuster rules in the U.S. Senate in order to ram through a bill that would strip health coverage from an estimated 23 million people over the next decade and pass massive tax cuts for the nation’s wealthiest individuals and corporations.

“The U.S. Senate should switch to 51 votes, immediately, and get Healthcare and TAX CUTS approved, fast and easy. Dems would do it, no doubt!” the president tweeted Tuesday morning. Continue reading

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‘Truly Dumb’: Why $2.4 Trillion Corporate Tax Cut Will Not Magically Pay for Itself

Economists and tax experts push back against White House reported plan to slash corporate rate by 60 percent

By Jon Queally, staff writer for Common Dreams. Published 4-25-2017

“Not to put too fine a point on it, this is false” writes Jared Bernstein in response to claims by Trump’s Treasury Secretary claims that $2.4 trillion corporate tax cut will magically pay for itself. (Photo: Timothy Krause/cc/flickr)

With reports that President Donald Trump wants to slash the corporate tax rate by 60 percent and Treasury Secretary Steven Mnuchin claiming widespread cuts for the nation’s wealthy and powerful will magically pay for themselves, progressive economists and tax experts are issuing early warnings that this is simply the latest attempt by Republicans to pull the wool over the eyes of average American taxpayers.

With more details expected during an offical White House announcement on Wednesday, numerous outlets have already reported that Trump will tout cutting the corporate tax rate from its current 35 percent down to an even more paltry 15 percent. As is well known and repeatedly documented, even the 35 percent official rate is largely a mythical number that few U.S. corporations actually pay. Continue reading

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As Push for Trump’s Taxes Gains Steam, Promised GOP Tax Overhaul Falters

“If [Trump] doesn’t release his returns, it is going to make it much more difficult to get tax reform done”

By Nika Knight, staff writer for Common Dreams. Published 4-18-2017

Demonstrators at the Tax March on April 15 in New York City. (Photo: Michael Kink/Twitter)

As millions of Americans file their tax returns, and days after tens of thousands of marched to demand that President Donald Trump make his tax returns public, the president is still refusing to release his returns.

On Monday, White House Press Secretary Sean Spicer reiterated the claim that Trump can’t release his taxes because they are under audit, a statement immediately refuted by tax experts. Continue reading

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