"The facts regarding this and other corporate behavior
that is harmful to the U. S. needs to be exposed over and over
again. They are not loyal to this country and that fact needs to
be made very clear so that when they try to buy our elections,
screw our workers, gut programs for the elderly and the poor,
and otherwise do harm to the American people, the voters don't
just blindly vote in elected officials that think everything
ought to be turned over to the private sector. They are not
accountable in any way and will use every kind of maneuver they
can find to avoid participating fully in supporting our society.
They are the real "takers" in our economy. "
- John S. (thecreeksedge)
"Money has no allegiance! Corporations don't care about
America, or it's people, just taking money OUT of America. And
they've purchased the Supreme Court and Congress to keep this
scam going. Citizens United has brought about legalized bribery
to the point of, many representatives don't represent their
constituents anymore, they represent who gives them the biggest
check! There's no loyalty to America, or it's people in any of
this stuff, just loyalty to the ALMIGHTY DOLLAR!!!!!!!" -
Byron R. (Byron_Renty)
"The US Supreme Court, in its ruling on "Citizens United,"
stated that corporations ARE people. What's more, they are a
peculiarly privileged class of people--campaign contribution
limits which apply to ordinary citizens do not apply to them.
"But your point is accurate. Corporations have no loyalty to the
people who support them, nor to the government which protects
them. They are too often headed by individuals whose chief
distinguishing characteristic is unbridled greed, and they are
willing to injure the American people to virtually any degree if
it affords them a temporary profit.I fear that they are killing
the goose that laid the golden egg." - TheHighForester
"I've read the entire list of major corporations that have
used the U.S. Congress approved tax-loopholes to evade & avoid
paying ANY TAXES whatsoever , for years & years . Why there
isn't a revolution across America I'm at a loss to comprehend !
This is blatant thievery is it not ? When you buy & own the
politicians who create the laws that allow this theft from the
"people of the United states" , you no longer have a law-abiding
country in anything other than name only ! That there are so few
Senators or Congressmen who take up this fight against the
corporate warlords of the U.S. is truly disheartening. The NEWS
networks have capitulated for the most part & like the fight for
sensible gun-laws , this one by Bernie Sanders will go the way
of the Dodo bird unless the American public wakes up & rises up
en masse ! To actually see the greed & avarice behind the
billions of dollars being stolen by these major banks &
corporations leaves me stunned & deeply disappointed in the U.S.
government at all levels."
-Winston Sardine (Winston_Sandra_Sardine)
A Choice for Corporate America:
Are You With America or the
by Senator Bernie Sanders
Posted: 02/09/2013 10:22 am
When the greed, recklessness, and illegal behavior on Wall
Street drove this country into the deepest recession since the
1930s, the largest financial institutions in the United States
took every advantage of being American. They just loved their
country -- and the willingness of the American people to provide
them with the largest bailout in world history. In 2008,
Congress approved a $700 billion gift to Wall Street. Another
$16 trillion in virtually zero interest loans and other
financial assistance came from the Federal Reserve. America.
What a great country.
But just two years later, as soon as these giant financial
institutions started making record-breaking profits again, they
suddenly lost their love for their native country. At a time
when the nation was suffering from a huge deficit, largely
created by the recession that Wall Street caused, the major
financial institutions did everything they could to avoid paying
American taxes by establishing shell corporations in the Cayman
Islands and other tax havens.
In 2010, Bank of America set up more than 200 subsidiaries in
the Cayman Islands (which has a corporate tax rate of 0.0
percent) to avoid paying U.S. taxes. It worked. Not only did
Bank of America pay nothing in federal income taxes, but it
received a rebate from the IRS worth $1.9 billion that year.
They are not alone. In 2010, JP Morgan Chase operated 83
subsidiaries incorporated in offshore tax havens to avoid paying
some $4.9 billion in U.S. taxes. That same year Goldman Sachs
operated 39 subsidiaries in offshore tax havens to avoid an
estimated $3.3 billion in U.S. taxes. Citigroup has paid no
federal income taxes for the last four years after receiving a
total of $2.5 trillion in financial assistance from the Federal
Reserve during the financial crisis.
On and on it goes. Wall Street banks and large companies love
America when they need corporate welfare. But when it comes to
paying American taxes or American wages, they want nothing to do
with this country. That has got to change.
Offshore tax abuse is not just limited to Wall Street. Each and
every year corporations and the wealthy are avoiding more than
$100 billion in U.S. taxes by sheltering their income offshore.
Pharmaceutical companies like Eli Lilly and Pfizer have fought
to make it illegal for the American people to buy cheaper
prescription drugs from Canada and Europe. But, during tax
season, Eli Lilly and Pfizer shift drug patents and profits to
the Netherlands and other offshore tax havens to avoid paying
Apple wants all of the advantages of being an American company,
but it doesn't want to pay American taxes or American wages. It
creates the iPad, the iPhone, the iPod, and iTunes in the United
States, but manufactures most of its products in China so it
doesn't have to pay American wages. Then it shifts most of its
profits to Ireland, Luxembourg, the British Virgin Islands and
other tax havens to avoid paying U.S. taxes. Without such
maneuvers, Apple's federal tax bill in the United States would
have been $2.4 billion higher in 2011.
Offshore tax schemes have become so absurd that one five-story
office building in the Cayman Islands is now the "home" to more
than 18,000 corporations.
This tax avoidance does not just reduce the revenue that we need
to pay for education, healthcare, roads, and environmental
protection, it is also costing us millions of American jobs.
Today, companies are using these same tax schemes to lower their
tax bills by shipping American jobs and factories abroad. These
tax breaks have contributed to the loss of more than 5 million
U.S. manufacturing jobs and the closure of more than 56,000
factories since 2000. That also has got to change.
At a time when we have a $16.5 trillion national debt; at a time
when roughly one-quarter of the largest corporations in America
are paying no federal income taxes; and at a time when corporate
profits are at an all-time high; it is past time for Wall Street
and corporate America to pay their fair share.
That's what the Corporate Tax Dodging Prevention Act (S.250)
that I have introduced with Rep. Jan Schakowsky (D-Ill.) is all
This legislation will stop profitable Wall Street banks and
corporations from sheltering profits in the Cayman Islands and
other tax havens to avoid paying U.S. taxes. It will also stop
rewarding companies that ship jobs and factories overseas with
tax breaks. The Joint Committee on Taxation has estimated in the
past that the provisions in this bill will raise more than $590
billion in revenue over the next decade.
As Congress debates deficit reduction, it is clear that we must
raise significant new revenue. At 15.8 percent of GDP, federal
revenue is at almost the lowest point in 60 years. Our
Republican colleagues want to balance the budget on the backs of
the elderly, the sick, the children, the veterans and the most
vulnerable by making massive cuts. At a time when the middle
class already is disappearing, that is not only a grossly
immoral position, it is bad economics.
We have a much better idea. Wall Street and the largest
corporations in the country must begin to pay their fair share
of taxes. They must not be able to continue hiding their profits
offshore and shipping American jobs overseas to avoid taxes.
Here's the simple truth. You can't be an American company only
when you want a massive bailout from the American people. You
have also got to be an American company, and pay your fair share
of taxes, as we struggle with the deficit and adequate funding
for the needs of the American people. If Wall Street and
corporate America don't agree, the next time they need a bailout
let them go to the Cayman Islands, let them go to Bermuda, let
them go to the Bahamas and let them ask those countries for
Untaxed U.S. corporate profits held overseas top
$2.1 trillion: study
By Kevin Drawbaugh and Patrick Temple-West
WASHINGTON Tue Apr 8, 2014 7:19pm EDT
(Reuters) - Foreign profits held overseas by U.S. corporations
to avoid taxes at home nearly doubled from 2008 to 2013 to top
$2.1 trillion, said a private research firm's report, prompting
a call for reform by the Senate's top tax law writer.
"The new numbers ... certainly highlight what is one of the key
challenges for tax reform. I do think there need to be some
reforms in this area," Senate Finance Committee Chairman Ron
Wyden told reporters on Tuesday on Capitol Hill.
Under U.S. law, corporations do not have to pay income tax on
most of their overseas profits until they are brought into the
United States. These earnings can be held offshore for years if
they are classified as indefinitely invested abroad.
Research firm Audit Analytics said in a report issued last week
that the total of such earnings was up 93 percent from 2008 to
2013, citing federal financial filings for companies listed in
the Russell 1000 index of U.S. corporations.
General Electric Co had the biggest pile of earnings stored
abroad, at $110 billion, the firm said.
Next were software maker Microsoft Corp, with $76.4 billion;
drugmakers Pfizer Inc, with $69 billion, and Merck & Co Inc,
with $57.1 billion; and high-tech group Apple Inc, with $54.4
billion, it said.
In response, GE said in a statement: "GE operates in more than
170 countries, and most of these overseas earnings have been
reinvested in active business operations like manufacturing
facilities and loans to non-U.S. customers."
Microsoft, Merck and Pfizer were not immediately available for
comment. Apple did not respond to requests for comment.
BAUCUS AND WYDEN
Congress has quarreled for years over the law that lets
multinationals stash profits abroad tax-free. Some favor killing
the law - known as offshore corporate income tax deferral - and
some back a one-time tax holiday that would let companies bring
foreign profits home, or "repatriate" them, at a low tax rate.
Debate over offshore deferral flared again in November when
Wyden's predecessor as finance committee chairman, former
Democratic Senator Max Baucus, proposed doing both. Baucus
resigned weeks later to become U.S. ambassador to China.
Wyden in the past has called for repeal of offshore deferral,
along with a repatriation holiday, among other changes to the
tax code, which he last month called "a rotten carcass that the
special interests feast on."
No decisive action is likely for now, however, with Congress
deadlocked over fiscal issues at least until after the November
mid-term congressional elections, according to policy analysts.
Next year lawmakers are likely to mount another push to overhaul
the tax code, a politically difficult feat that has not been
pulled off since 1986, when Republican President Ronald Reagan
and a divided Congress managed to get it done.
The top U.S. corporate income tax rate is 35 percent, though few
multinationals pay anywhere near that thanks to tax-reducing
loopholes written into the code in the past 28 years, including
some that have enabled wider use of offshore deferral.
(Additional reporting by Lewis Krauskopf and Bill Berkrot in New
York, Bill Rigby in Seattle, Edwin Chan in San Francisco;
Editing by Howard Goller and Tom Brown)
1960 Colliers Encyclopedia Yearbook, page 202: