- Posted August 6, 2014 by
Watertown, New York
This iReport is part of an assignment:
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- The US Supreme Court Has Granted 'Pinocchio' Peoplehood, But Failed to Give Him a Conscience
- Don't Worry. If Obama Doesn't "Heal the Planet", GOD Will Fix It", say Republicans Like Sen. Jim Inhofe
Corporate Tax Evasion, er..'Inversion'- Corporate 'People' Desert U.S. to Avoid Taxes
They worked to create a better life for Americans which rewarded them with their purchases and loyalty for an American brand.
Since the U.S. Supreme Court gave corporations 'citizenship', many have decided to renounce that priviledge and take up residence in another country where they can avoid paying taxes to help run our government which provides services for the very consumers those traitorous corporate deserters want to buy their products which are now made in countries where the spread in labor costs can be exploited.
Slaves make things for less than American workers so the excuse is to claim that labor in the U.S. is too high.
Well, the same corporations don't believe the prices they charge for the products they sell is too high, nor do they pass on the tremendous savings to consumers.
No. Not at all.
Corporations' profits are at all time highs. And now they've figured out a loophole that will let them be even less responsible to the country that allows them to make so much.
The way they can now exploit the workers of the U.S. more is by 'Inversion'.
"You've been hearing a lot about corporations "renouncing their U.S. citizenship" through "tax inversions."
This is when a company buys or merges with a non-U.S. company and claims to no longer be based in the U.S. to get out of paying certain taxes.
The company does, however, keep the same employees, executives, buildings, sales channels and customers it had inside the U.S. before the switch.
The epidemic of tax inversions represents just one of many ways corporations are dodging their taxes by taking advantage of our outdated and rigged corporate tax system.
It is time for a serious debate about corporate taxes, and on Monday a new report by District Economics Group economist Michael Udell offered a bold new alternative that is so radically simple that even the most clever corporate tax accountant would have a hard time finding a way around its fair and universal proposition:
If a company sells products or services in the U.S., it must pay taxes on the U.S. proportion of its worldwide sales."
Some will continue to harp on the belief that U.S. corporate taxes are the highest of any country and that's why Congress should bring that 35% down to 28% to compete with countries that have lower corporate taxes.
When you look at what corporations now pay, even with the 35% rate, it comes nowhere near that amount with the lavish tax breaks and loophole in U.S. tax law that's designed to give the big contributors a break.
"Last month, President Obama loudly questioned the patriotism of inverted companies, calling them “corporate deserters” who are abandoning their country “just to get out of paying their fair share of taxes. . . . My attitude is, I don’t care if it’s legal. It’s wrong.”
It is wrong.
Why should these 'people' as the U.S. Supreme Court sees them, be able to change their citizenship to avoid their responsibility and still be treated as American companies by being able to lobby Congress or import their foreign made goods tariff free?
Citizenship has advantages and if you're not a citizen, well, where are the complaints from Republicans that these illegals can come back to America and expect all the rights of real citizens who do their share to pay for our country?
If Americans were to punish APPLE for manufacturing phones in Taiwan by refusing to buy one made there, you'd see this job outsourcing and tax avoidance stop immediately.
But then for many American taxpayers and workers, having the latest iPhone is more important than sending a clear message to the biggest tax avoiders and job outsourcers, isn't it?
A Simplified Way To Tax Multinational Corporations:
"The idea is to tax corporations based on where sales are made, not where profits are reported. If a company has 50 percent of its sales in the U.S., the U.S. would tax 50 percent of its worldwide profits."
Complete story here:
U.S. policymakers gird for rash of corporate expatriations
"Washington policymakers are bracing for a wave of corporations to renounce their U.S. citizenship over the next few months, depriving the federal government of billions of dollars in tax revenue and stoking public outrage ahead of the Nov. 4 congressional elections.
So far this year, about a dozen U.S. companies — including such well-known brands as Medtronic medical devices and Chiquita bananas — have merged with foreign firms and shifted their headquarters offshore to avoid U.S. taxes, analysts say."
An 'Inversion' Deal Could Raise Your Taxes
Shareholders Are Likely to Owe Capital-Gains Tax