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THE BIG DODGE: Major Companies Avoid Paying $92 Billion In U.S. T


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Just think what that money could do with improving our infrastructure or for better schools or paying down out debt.

 

 

18 Of America's Biggest Companies Using Tax Havens To Skirt $92 Billion In U.S. Taxes: CTJ

 

 

Apple may be getting all the attention from lawmakers and the news media for its offshore tax practices, but a new report finds that other major companies are using similar tactics to avoid paying taxes on billions of dollars in profits.

 

At least 18 companies, including Nike, Microsoft and Apple, are stashing profits in offshore tax havens likely in a bid to avoid paying taxes, according to a new report from the Citizens for Tax Justice, a left-leaning research group. If the companies brought that money home, they would pay combined more than $92 billion in U.S. taxes, the report found.

“It’s misguided to say it’s some unique thing that Apple has created," said Matthew Gardner, the executive director of the Institute on Taxation and Economic Policy, a research partner of CTJ. "A lot of big companies are very likely doing it.”

A Nike spokesperson declined to comment on the report. Microsoft and Apple didn’t immediately return messages from The Huffington Post seeking comment.

Apple came under fire last month after a Senate hearing revealed that the company paid just 2 percent in taxes on $74 billion in profits by housing its money in an Irish subsidiary that hadn’t declared its tax residency anywhere in the world. Apple CEO Tim Cook told lawmakers that the company pays “all the taxes we owe,” which, while technically true, offers an example of the larger issue of corporate tax avoidance that some lawmakers are targeting.

Companies like Apple are able to use loopholes to legally keep their money in other countries, and they don’t have to pay U.S. taxes on that money unless it comes back home. When a corporation brings money stashed abroad back to the U.S., it pays the difference between what was already paid in taxes to the country where the money was previously held and the top U.S. corporate tax rate of 35 percent.

The companies on CTJ’s list disclosed in their filings with the Securities and Exchange Commission that if they brought their overseas profits back to the U.S. they would pay a tax rate above 30 percent, indicating that the countries where their money is currently housed have very low tax rates.

 

“When you see somebody estimated that we'd pay 30 percent or even 35 percent when we bring these profits back, that is an indirect admission that they’ve paid nothing,” Gardner said. “There’s a very small number of countries in which you can pay single digits in taxes on your profits -- and those countries have an awful lot of beach front.”

Gardner noted it's likely there are more companies than those on CTJ’s list that avoid taxes by keeping their profits in other countries. The SEC offers companies two options when disclosing their U.S. tax rate for profits housed overseas: They can either estimate what their rate would be if they brought the profits back, or they can claim that it’s too complicated to figure out, Gardner said.

The companies that made CTJ’s list are those that offered an estimate, but there are 235 other companies that told the SEC that they’re holding profits overseas but didn't disclose their hypothetical U.S. tax rate, according to the CTJ report. In total, these non-disclosing companies hold almost $1.3 trillion in non-repatriated profits abroad, CTJ found.

“In all likelihood the vast majority of these 235 companies could give you a good estimate of what they’d pay if these profits were brought back,” Gardner said. “The idea that they can’t just figure out what they’d pay if these profits were brought back is pretty laughable.”

Many of the companies discussed in CTJ’s report, including Apple, have pushed lawmakers to grant a holiday on taxes for corporate profits brought back home, or to move towards a territorial tax system that would allow companies to effectively pay no U.S. taxes on the income they earn abroad. Supporters of such proposals argue that adopting a simpler corporate tax code would make the U.S. a friendlier place to do business, while critics say the policies could cost America billions of dollars in tax revenue.

But Gardner said it’s difficult for lawmakers to assess those proposals when they don’t know how much companies are paying in taxes abroad.

“It’s asking an awful lot for Congress to evaluate these questions without having access to this basic information,” he said. “That’s the bottom line. Congress should have access to information that they currently don’t have access to.”

 

http://www.huffingtonpost.com/2013/06/03/apple-tax-havens_n_3378935.html

 

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ec...just wondering if you cross checked to see how many of them are major contributors to the Obama campaign...like GE for example.

 

You know GE...the owners of the Obama shill NBC ! They get to avoid paying their fair share of taxes all the time.

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ec...just wondering if you cross checked to see how many of them are major contributors to the Obama campaign...like GE for example.

 

You know GE...the owners of the Obama shill NBC ! They get to avoid paying their fair share of taxes all the time.

 

Progressive corporations are exempt from scrutiny. Shape up or it's collective internment camp for you! :angry2::angry2:

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THE BIG DODGE: Major Companies Avoid Paying $92 Billion In U.S. Taxes

 

That's the freaking point of tax reform, moonbat. Cut rates and close loopholes, because you aren't going to get 35% out of them anyway.

 

Which will stimulate economic growth faster than Obama's worst recovery-in-80-years.

 

Just think what that money could do with improving our infrastructure or for better schools or paying down out debt.

 

Hey, why not raise the rate to 100%?

 

I mean, who needs economic growth and private sector jobs anyway?

 

Imbecile.

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We need to be real careful - those companies will probably move everything offshore if we fuck with them.

 

cc

 

Nope. They'll just pass the cost onto the consumer and their employees unless you raise it to the point where they can make a better profit in another country assuming all other variables are favorable.

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Nope. They'll just pass the cost onto the consumer and their employees unless you raise it to the point where they can make a better profit in another country assuming all other variables are favorable.

 

In other words, the American people are absolute hostages to industry. No matter what we do, no matter what laws we pass. they are going to get what they want and screw us in the process. That's what you're saying.

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In other words, the American people are absolute hostages to industry. No matter what we do, no matter what laws we pass. they are going to get what they want and screw us in the process. That's what you're saying.

 

The American people don't have to be customers of these companies. The American people can produce and sell what these companies produce and sell in a way they feel is appropriate. The American people can elect officials that don't keep these companies afloat when business is bad.

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Just think what that money could do with improving our infrastructure or for better schools or paying down out debt.

 

Apple may be getting all the attention from lawmakers and the news media for its offshore tax practices, but a new report finds that other major companies are using similar tactics to avoid paying taxes on billions of dollars in profits.

 

At least 18 companies, including Nike, Microsoft and Apple, are stashing profits in offshore tax havens likely in a bid to avoid paying taxes, according to a new report from the Citizens for Tax Justice, a left-leaning research group. If the companies brought that money home, they would pay combined more than $92 billion in U.S. taxes, the report found.

 

If companies brought that money home...

Why is it that liberals think they have right to the money of companies when those monies aren't earned in the U.S., and taxes were paid to the countries where those monies were earned?

 

The fact is that companies don't repatriate those monies because of the punitive tax rates levied on them by idiots like you.

 

 

In other words, the American people are absolute hostages to industry. No matter what we do, no matter what laws we pass. they are going to get what they want and screw us in the process. That's what you're saying.

Wow, how are you screwed by a company that earns money in a foreign country?

What claim do you have on their money?

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we should close the doors on these corporations. and then figure out how to house all those retards that invested their retirement in them...

 

i dont think you retards (liberals) realize this, but most peoples retirement is tied up in the stock market...

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In other words, the American people are absolute hostages to industry. No matter what we do, no matter what laws we pass. they are going to get what they want and screw us in the process. That's what you're saying.

 

Not really. Just that our government has to compete against foreign governments(regulations, taxes, infrastructure) due to the ease of moving a business around. Ultimately it brings us the cheapest price with the least amount of resources used so we all benefit.

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