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Posts Tagged ‘corporate income taxes’

Last Chance to Make Corporations Come Clean on Tax Havens

Friday, July 22nd, 2016

Isaiah J. PoolePeople who want multi;national corporations to be held accountable for their tax-dodging tactics only have a few more hours Thursday to tell the Security and Exchange Commission to support a tough rule that would go a long way toward making that happen.

The SEC is soliciting comments until 11:59 p.m. Eastern time on a new business and financial disclosure rule that would require corporations to make public more information about their overseas subsidiaries.

This rule would affect the estimated $2.4 trillion in profits that corporations ranging from Apple to Walmart have shunted offshore in order to avoid paying U.S. corporate taxes. Right now, the rules for disclosing corporate use of offshore tax havens is, as the tax code itself, riddled with loopholes.

For one thing, companies are not required to report their tax liabilities on a country-by-country basis, so the public – including investors in these companies – have no way to accurately judge how a company is lowering its tax liabilities or what would happen if a country decides to radically change its tax policies. Nor do companies routinely report the names and locations of their subsidiaries; no one knew, for example, that Walmart had 78 subsidiaries in overseas tax havens, with $76 billion in assets, before researchers for Americans for Tax Fairness ferreted out the information.

Another Americans for Tax Fairness report found that the pharmaceutical company Pfizer was holding twice as much of its offshore profits in overseas subsidiaries as it was reporting to the public.

This lack of transparency does harm to investors – who should know details of how the companies they invest in are funneling their profits and the risks associated with their tax-avoidance strategies – and harms the public as a whole, which is shortchanged every time corporations game the system to avoid paying the taxes they owe.

That is why it’s important for people to take a few minutes now to tell the SEC to require corporations to tell the truth about their overseas subsidiaries. After all, expecting a corporation to be honest about how and where it earns its profits should not be too much to ask.

This blog originally appeared at OurFuture.org on July 21, 2016. Reprinted with permission.

Isaiah J. Poole worked at Campaign for America’s Future. He attended Pennsylvania State University and lives in Washington, DC.

Trumka: Obama Budget Falls Short on Corporate Tax Reform, Infrastructure

Tuesday, February 3rd, 2015

Richard TrumkaAFL-CIO President Richard Trumka released the following statement on President Barack Obama’s fiscal year 2016 budget proposal:

In the State of the Union, President Obama forcefully advocated for working families and the bold actions we need to create an economy that truly works for all working people. His budget follows through with a number of proposals that would benefit American workers, such as repeal of harmful sequestration cuts, higher taxes on capital gains and a financial crisis fee on the largest financial institutions. These are all pieces to a robust program to raise wages.

But when it comes to fixing our rigged corporate tax system, the actual proposals in President Obama’s budget don’t match the rhetoric. As this budget stands, it falls short of a very simple standard: our tax system should not encourage corporations to shift jobs or profits overseas. We are also disappointed that the administration continues to propose corporate tax reform that does not raise significant amounts of revenue over the long term.

President Obama’s budget proposal to increase infrastructure investment is an important step in the right direction. But it does not go nearly far enough. Our economy needs trillions of dollars in investment to drive the productivity growth vital to raising wages. Our current infrastructure deficit, taken in context with the egregious level of inequality in our economy, means that we have to completely rethink our sense of progress.

Our crumbling roads and bridges need more than one-time or short-term fixes. We need a big vision if we are to build the future America and its workers deserve.

This originally appeared in aflcio.org on February 3, 2015. Reprinted with permission.

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