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Interesting Quotes

"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 Cayman Islands?

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 U.S. taxes.

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 about.

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 corporate welfare. 


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.


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: