HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » An Easy Way to Squeeze a ...

Mon Sep 2, 2013, 06:50 AM

An Easy Way to Squeeze a Lot of Taxes from Corporations That Try to Hide Their Profits Offshore [View all]

http://www.alternet.org/economy/easy-way-squeeze-lot-taxes-corporations-try-hide-their-profits-offshore



Here is one thing Congress could do that would create more jobs, boost the economy and reduce both the budget deficit and the trade deficit. This one thing would not only provide a big boost now, but would provide an ongoing boost from now on. Congress should modify the “deferral” tax loophole that lets companies dodge their taxes by moving and keeping profits “out of the country.”

The top corporate tax rate is currently 35%. But corporations are allowed to “defer” paying taxes on profits earned outside of the country until they “repatriate” those profits, which means bringing the money back into the country. (Any taxes paid elsewhere are deducted from the amount owed.) There are solid reasons to allow corporations to do this. Simply put, they might need to put that money to good use, which will benefit the company, which in theory will later benefit our country.

But this tax deferral has turned into a huge loophole that is draining our country of jobs, tax revenue, investment, manufacturing infrastructure and other good things We the People are supposed to receive in return for allowing these corporations to operate. Companies not only are keeping profits out of the country, the loophole gives them an incentive to engage in schemes that shift more and more jobs, production and profit centers out of the country. (One well-known example: Apple transferred ownership of it’s “crown jewels” — “intellectual property” — to Ireland.)

A Ton Of Cash That We The People Could Really Put To Use

The amount now being held outside of the country is astounding. Some estimates say that it is as much as $1.5 to 2 trillion, or even more. If the full amount were brought back and the tax rate applied that would bring a $525-700 billion windfall that the government could use to hire people to get things done that really, really need to get done like modernizing our infrastructure, hiring teachers, building high-speed rail, retrofitting homes and buildings to be energy-efficient … so manythings… (Of course it would be less because of taxes paid elsewhere, etc., but we’re still talking hundreds of billions.)

26 replies, 2287 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 26 replies Author Time Post
Reply An Easy Way to Squeeze a Lot of Taxes from Corporations That Try to Hide Their Profits Offshore [View all]
xchrom Sep 2013 OP
Scuba Sep 2013 #1
hobbit709 Sep 2013 #2
Royal777 Sep 2013 #20
dkf Sep 2013 #3
eShirl Sep 2013 #4
Celebration Sep 2013 #5
socialist_n_TN Sep 2013 #15
FreeJoe Sep 2013 #6
Half-Century Man Sep 2013 #10
FreeJoe Sep 2013 #16
radiclib Sep 2013 #7
alc Sep 2013 #8
mbperrin Sep 2013 #12
oldhippie Sep 2013 #17
AnotherMcIntosh Sep 2013 #21
mbperrin Sep 2013 #23
Dustlawyer Sep 2013 #9
7962 Sep 2013 #11
mbperrin Sep 2013 #13
7962 Sep 2013 #14
mbperrin Sep 2013 #18
7962 Sep 2013 #19
mbperrin Sep 2013 #22
7962 Sep 2013 #24
mbperrin Sep 2013 #25
valerief Sep 2013 #26