Skip to content

Yes, corporate tax havens cost you too!

By Catholic Online (NEWS CONSORTIUM)
6/6/2014 (3 years ago)
Catholic Online (www.catholic.org)

Corporations act as they do, and so does Congress.

Surprise, surprise, surprise!  The same day Cardinal Maradiaga condemned unethical business practices that do nothing to help those at the bottom of society, a report was released that shows a majority of Fortune 500 companies stash their money offshore to avoid U.S. taxes. The practice cheats American taxpayers out of $90 billion per year.

It's common and it cheats millions of their due.

It's common and it cheats millions of their due.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
6/6/2014 (3 years ago)

Published in Business & Economics

Keywords: tax haven, congress, corporations


LOS ANGELES, CA (Catholic Online) - Several Fortune 500 companies, using no more than an offshore post office box, are banking hundreds of billions of dollars in offshore tax havens. The estimated $90 billion shortfall in U.S. taxes is made up by taxpayers who pay higher rates or will pay higher rates later as interest on federal debt.

This practice costs every man, woman and child in America about $300 per year in extra taxes. However, it keeps corporate balance sheets looking better and makes millionaires richer.

We must each do our part to serve those in need.

Corporate bosses have a fiduciary responsibility to build shareholder value. Part of that pursuit is to protect income from tax burdens imposed by various governments. However, there is another responsibility which is being shirked, which is a responsibility to the people of the United States, often where these businesses make much of their money.

Such practices may boost the bottom line, which is great for investors, but it hits Americans in the pocketbook each tax cycle.

So who are the culprits?

Apple, GE, Microsoft, Pfizer and Merck are listed as the top savers using these tactics. The Netherlands, Singapore, Hong Kong, Luxembourg, the Caymans and Ireland are the places used for these havens.

The blame is not entirely on corporations, which are simply acting as corporations naturally do. Instead, it is up to Congress to close these tax loopholes by passing laws that require payments regardless of where the money goes.

Banks also bear some burden for operating these tax havens. The prime offender is Bank of America, which maintains some 264 tax havens.

It is believed that more tax havens exist and more businesses are using them, but they remain unknown to the federal government for various reasons.

Corporations in the United States are heavily taxes, paying a rate of about 35 percent, which is about 10 percent higher than is usually paid in the industrialized world. Corporations also lobby Congress heavily to keep loopholes open which are worth billions to them over several years.

Despite all this, it's that much less money for the government to spend on social programs and education, and it's less money in the hands of private citizens where it could do the most good of all.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for JULY 2017
Lapsed Christians.
That our brothers and sisters who have strayed from the faith, through our prayer and witness to the Gospel, may rediscover the merciful closeness of the Lord and the beauty of the Christian life.


Comments


More Business & Economics

'Budgets are moral documents'

Image of

The highly relevant quote, "Budgets are moral documents," has been arguably attributed to Rev. Martin Luther King, Jr. But if he didn't ... continue reading


Central bankers warn of looming global recession Watch

Image of A recession could be lurking around the corner and central banks have been asked to take note, especially in Asia.

A group of central bankers has warned that a great recession, possibly larger than the 2007-2008 recession is looming on a global scale. ... continue reading


The end of the farm as we know it has arrived - here's how we're about to change the way we grow food Watch

Image of Farming, with its backbreaking labor and myriad of challenges, is about to become an anachronism. Vertical farming will replace the traditional farm within the next few decades.

Farming as we know it is about to disappear. The entire disappearance may take generations to happen, and there will always be a few farms ... continue reading


Why Google, YouTube, Facebook and others need to be broken up -- or regulated Watch

Image of Monopolies are back, and they're taking over everything.

Is to time to break up the monopolies? As Google, Facebook and others grow larger, calls for their breakup are emerging. There is an urgent ... continue reading


Tesla Model 3 may fall short of forecasts, but it will still change the world Watch

Image of The Tesla Model 3 is the Model T Ford of electric cars.

The Tesla Model 3 is a game changer for the auto industry. It is a reasonably priced, well-designed electric car that looks good. It has ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.