Yes, corporate tax havens cost you too!
By Catholic Online (NEWS CONSORTIUM)
6/6/2014 (3 years ago)
Catholic Online (www.catholic.org)
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.
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.
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.
Copyright 2018 - Distributed by THE CALIFORNIA NETWORK
Pope Francis Prayer Intentions for JANUARY 2018
Religious Minorities in Asia. That Christians, and other religious minorities in Asian countries, may be able to practise their faith in full freedom.
Jobless claims historic low! - Why workers are getting raises this year, thanks to President Trump Watch
Say what you will about President Trump, but American workers are starting to "win" under his administration. Jobless claims have reached a ... continue reading
Early reports from the retail sector show that sales between November 1 and Christmas Eve were up 4.9 percent over last year. Workers ... continue reading
President Trump has signed his tax reform bill, aimed at providing tax cuts for most Americans as well as simulating job growth. President ... continue reading
Is now the time to sell on Wall Street? Stocks are on a bubble, according to multiple analysis and expert opinions. Fundamental market ... continue reading
The economy is about to go into recession according to several Wall Street firms. They are warning investors to prepare for an end to the ... continue reading
by Catholic Online
- St. Fillan: Saint of the Day for Friday, January 19, 2018
- Jobless claims are down - what does that mean for workers? HD Video
- Daily Reading for Saturday, January 20th, 2018 HD Video
- Daily Readings for Friday, January 19, 2018
- Jobless claims historic low! - Why workers are getting raises this ...
- Why are the youth leaving the Church?
- Pope Francis: Faith is an adventure!
- Daily Reading for Friday, January 19th, 2018 HD
- North and South Korea agree to march together at the Olympics with first ever joint team HD
- CDC: Swine flu joining killer influenza outbreak, expected to become more severe HD
- Daily Reading for Thursday, January 18th, 2018 HD
Learn about Catholic world
Inform - Inspire - Ignite
Catholic Online Saints
Your saints explained
Catholic Online Prayers
Prayers for every need
Catholic Online Bible
Complete bible online
Catholic Online News
Your news Catholic eye
Today's bible reading
Products and services we offer
Catholic Online Shopping
Catholic medals, gifts & books
The California Network
Inspiring streaming service
Learn the Catholic way
Teacher lesson plans & resources
Support Free Education
Tax deductible support Free education