| American corporations do not pay higher taxes than in other parts of the developed world. Instead of cutting corporate tax rates, we should be closing corporate tax loopholes. |
| American corporations are holding $1.7 trillion in profits outside the country – just sitting there – rather than bringing that money home, paying the taxes due and then paying it out to shareholders or using it to “create jobs” with new factories, research facilities and equipment. Corporate profits are at record levels, while corporate taxes are very, very low – an “effective” rate of just 12.1 percent but down to zero in so many cases. Corporate tax revenue accounted for 30.5 percent of federal revenue in 1953, but by 2011 the share of corporate tax revenue had fallen to 7.9 percent. They want the top U.S. corporate tax rate (historically as high as 53%, and 46 percent when Reagan took office) reduced from the current 35.6 percent to 25 percent — a reduction of about 30%! They claim this will make the United States “a more attractive place to invest and create jobs.” Of course giant, multinational corporations have not been paying anywhere near 35.6 percent – and so what if they were? (And obviously — just look around us — they haven’t been “creating jobs,” either.) Companies like Google, Apple, GE and many others are holding $1.7 trillion out of the country untaxed, which was made from moving jobs, factories, processes, services and profit centers out of the country to China and to tax havens elsewhere. One solution to the problem of companies holding profits outside of the U.S. is to require American companies to return all profits to the U.S., pay their taxes, and then either use that money to "create jobs" with new factories and research facilities and equipment, etc. or distribute it to shareholders. This would return the $1.7 trillion to the country, would bring the country up to hundreds of billions in tax revenue, and would help the economy through corporate investment or distribution to shareholders. Source: "Beware the New Corporate Tax-Cut Scam: LIFT Is a Big Lie by By Dave Johnson, Campaign for America's Future (via truth-out.org) - 22 March 2013 |
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