Corporate Tax “Inversion”(Tax Dodging)
Author: Editors, Founder,
The size of America’s trade deficit with the World is huge. Although foreign governments are eager to promote their sales to us, it’s primarily American companies that have created the deficit. They call themselves “multi-nationals,” which is your first clue about their level of interest in the American people, our economy and our position in the World. Their attitude also has an enormous impact on our economic safety. That level of injury can only be matched by the insult of their tax avoidance schemes.
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The newspeak for this insult is called “inversion.” It means that these same multi-national companies who have made enormous profits from exploiting America have refused to pay taxes in America. According to Bloomberg, American multi-nationals are holding more than $2.3 Trillion in taxable profits offshore. The same companies who take advantage of the American market refuse to pay their share of the costs of protecting their trade routes and their access to America. Their greed is insulting to the American taxpayers who are paying for their protection without their participation. Feel stupid yet?
Some companies have actually moved their headquarters to avoid American corporate taxes. Ireland is a favorite destination. The Irish corporate tax rate is only 15-17%, rather than 35% in America. Ireland doesn’t have much of a defense budget. But as long as America will protect them, the fugitive corporate tax evaders will continue with their flight. Sell stuff to stupid Americans, take huge profits, pay no taxes and dare the U.S. Government to do anything about it.
Some have suggested revoking the citizenship of the perpetrators. . . .board members and executives; others have suggested declaring them traitors and jailing them. But this is really about money and greed. Remember, these are the same folks who have already raped the American economy because there are no laws or regulations to stop them. The best most American consumers can do is boycott their products.
Tax reform discussion in Congress has produced no progress on this subject over the last ten years, and the exploitation continues. Recently, Congressional hearings produced testimony regarding an even more rapacious consequence of “inversion.” Foreign companies are increasingly purchasing profitable American companies in order to take advantage of that profitability (being held offshore) while avoiding paying taxes in America. It is not clear that Congress intends any action on “inversion,” and they won’t if the American people don’t kick their butts.