Hedge fund managers earn a whole lot of money doing what they do. And yet, because of a bizarre Internal Revenue Service (IRS) loophole, they often pay a lower effective tax rate than most middle-class families. The top 25 hedge fund managers alone earned more than twice what all of the kindergarten teachers in the United States earned combined. But this isn't the way things have to be, the U.S. Department of Treasury and the IRS have proposed a fix to the hedge fund reinsurance loophole.
Over at AlterNet, Richard Eskow has a great article highlighting hard-to-believe facts about American corporate tax dodging that will probably make you angry. For instance, did you know that corporate tax rates are at a 60-year low at the same time that corporate profits are at a 60-year high? Or, that as part of the extreme lengths companies go through to avoid paying taxes in the United States, one building in the Cayman Islands is the officially registered headquarters for nearly 19,000 corporations?
A group of corporate CEOs, known as the Reforming America's Taxes Equitably (RATE) Coalition, sent a letter to Congress asking for the corporate tax rate to be lowered. CEOs from 17 of the largest U.S. companies say, in the letter, that the corporate tax rate of 35% is the highest of any industrialized nation and that it leaves American companies unable to compete.
Are you tired of the 1 percent and big corporations gaming the tax system and loopholing their way to a tax bite that’s lower than what most of us honest working people pay? Take action on Tax Day tomorrow by joining working families and community, faith and other activists to demand that the 1% and corporations pay their fair share. Click here to find a Tax Day action near you.
While Verizon workers toil without a contract, a report issued jointly today by Citizens for Tax Justice and the Institute on Taxation and Economic Policy shows that it’s not just its workers the company is short-changing; it’s all of the American people. For the last three years, Verizon has paid less than zero taxes. That’s right—through the use of corporate loopholes, Verizon has actually “made” money through its tax filings, according to the report, “Corporate Taxpayers and Corporate Tax Dodgers.”