Everyone has a theory of what created the economic crisis in the USA, yet not many mention these off shore tax havens as one of the principal culprits.
How can anyone believe that closing up companies in the US, setting up shop in a foreign country and not paying taxes, can lead to prosperity and job creation in the United States? Remember, this eliminated US jobs and contributions to the IRS!
These multinational companies, with their bottomless purse to lobby Congress and other elected officials, have influenced Congress to create a special code in the IRS to scam the American tax payer. They sell false expectations and bridges to gullible and greedy politicians.
They have lobbied Congress and the IRS to classify Puerto Rico, (a territory of the US for over 100 years), as a foreign country for their taxation purposes. This has resulted in the US denying Puerto Ricans the rights as US citizens to vote for the President, have representation in Congress and participate in the political processes of the United States. MJ
The real cost of America's global tax dodgers
THURSDAY, AUG 18, 2011 17:57 ET
BY WILLIAM LAZONICK
By now the story is familiar. For the last decade US-based business corporations have been engaged in the massive offshoring of good jobs to high-growth, low-wage areas of the world, especially China and India. In general, these companies have found offshoring to be immensely profitable. For working people in the United States to gain some benefit from this globalization process, US-based corporations must repatriate some of their foreign profits to invest in high value-added job opportunities back home.
Yet prevailing US tax law both encourages offshoring and discourages the repatriation of profits. In principle, US individuals and corporations are supposed to pay US taxes on their worldwide income. Through an overseas tax deferral law, however, a US company does not pay the 35 percent corporation tax on foreign earnings until it repatriates these profits to the United States. The tax law gives US corporations an added incentive not only to offshore employment but also to reinvest the earnings of offshored operations outside the United States.
THURSDAY, AUG 18, 2011 17:57 ET
BY WILLIAM LAZONICK
By now the story is familiar. For the last decade US-based business corporations have been engaged in the massive offshoring of good jobs to high-growth, low-wage areas of the world, especially China and India. In general, these companies have found offshoring to be immensely profitable. For working people in the United States to gain some benefit from this globalization process, US-based corporations must repatriate some of their foreign profits to invest in high value-added job opportunities back home.
Yet prevailing US tax law both encourages offshoring and discourages the repatriation of profits. In principle, US individuals and corporations are supposed to pay US taxes on their worldwide income. Through an overseas tax deferral law, however, a US company does not pay the 35 percent corporation tax on foreign earnings until it repatriates these profits to the United States. The tax law gives US corporations an added incentive not only to offshore employment but also to reinvest the earnings of offshored operations outside the United States.
More:
Reuters: THE “PEOPLE” WASHINGTON HELPS MOST: BIG CORPORATIONS
http://blogs.reuters.com/frontrow/2011/08/19/the-people-washington-helps-most-big-corporations/
Y ahora los banqueros internacionales resienten que les fiscalicen sus tax shelters. http://www.cnbc.com/id/44200169
ReplyDeleteGood point!
ReplyDeleteMJ