In 2004, Congress enacted a law to prevent "corporate inversions" in which corporations reincorporate in a foreign country to avoid paying U.S. taxes, but a gaping loophole allows corporations to get around this law by merging with a foreign company.
Simply put, it allows corporations to avoid paying taxes when they "renounce their U.S. citizenship" and change their corporate address to a foreign country.
Corporations and their allies on Capitol Hill claim that if corporate tax rates were lowered, it would be a boon to the economy, with much of the tax savings fueling a U.S. job creation boom. The only problem with that theory is that there is no evidence to support it. In fact, a new study finds quite the opposite.
According to every poll, an overwhelming majority of people want to repeal the tax breaks that encourage companies to send jobs overseas and shift their profits to overseas tax havens.
The tax proposal unveiled this week by Sen. Baucus (D-Mont.) should be commended for closing some of the loopholes that give companies incentives to shift employment and profits overseas. However, the Baucus draft has two significant shortcomings: (1) It leaves too many of those incentives in place and (2) It does not raise any tax revenue over the long term.
Americans for Tax Fairness (ATF) is asking President Obama to make corporations pay their fair share, and they want you to join in and tell the president your own personal story about how increasing corporate taxation would help your life. A simple tool on the ATF website allows you to easily send the president your story.
Leading up to Tax Day, April 15, Americans for Tax Fairness (ATF) is calling attention to 10 corporations that are dodging paying their fair share of taxes. We are releasing a set of Corporate Tax Dodger Baseball Cards because these companies are as skilled as baseball pros. Be sure to collect all 10 and see what makes these companies professional tax dodgers.
Over the past 40 years, some of the nation’s biggest and most profitable companies have not only moved America's jobs and manufacturing overseas, but by taking advantage of a U.S. tax code that encourages companies to shift their income overseas, they have cut the taxes they owe by more than half. The result, writes Jia Lynn Yang in The Washington Post,
is lower revenue here that could pay for infrastructure, education and other services that support domestic growth—and that make life easier for U.S. firms.
We've reported for several months now the "Fix the Debt" group is a Trojan horse. It cynically calls for cuts to Social Security, Medicare and Medicaid benefits (in the name of "deficit reduction") while advocating for lower taxes for corporations and businesses that ship jobs overseas.
Americans for Tax Fairness, a campaign of state and local organizations united in support of a tax system that works for all Americans, released a letter today sent to President Obama and Capitol Hill in support of revenue-positive changes to the corporate tax code and to voice strong opposition to a territorial tax system.
AFL-CIO President Richard Trumka and other national leaders of unions and progressive groups actively involved in discussions over fiscal priorities met with President Obama Tuesday morning at the White House. Trumka and the group urged Obama to not give more tax cuts to those making more than $250,000 and to not cut Social Security, Medicare and Medicaid benefits. The group also pledged to support the president in fighting for a good deal for the country, even if that means negotiating into the new year. Afterward, Trumka told reporters: