Wednesday, June 3, 2015

Now We Know Why Puerto Rico Is Bankrupt....

Everyday News in Puerto Rico: 

Ever wonder why Puerto Rico is bankrupt when it has multiple Offshore Corporations like Microsoft, who offered to help the economy? 

Yeah right !! Microsoft receives 2.2 million dollars in tax benefits a year for each of its 170 employees, many with minimum wage for operating in the island 

Tax dodging by big firms ‘robs poor countries of billions of dollars a year’
Sam Jones
Global Development
June 2, 2015
Campaigners calling for tax justice set up a fake tax haven in London as part of their protest. Photograph: David Mbiyu/Demotix
Profit-shifting and tax abuse by multinational corporations deprives developing countries of resources needed to combat poverty, says report by NGOs. The international corporate tax system is outdated, unfair and will continue to cost developing countries tens of billions of dollars in lost revenues each year unless it is completely overhauled, a coalition of charities and civil society organisations has warned.

“Tax abuse by multinational corporations increases the tax burden on other taxpayers, violates the corporations’ civic obligations, robs developed and developing countries of critical resources to fight poverty and fund public services, exacerbates income inequality, and increases developing country reliance on foreign assistance,” says the report.
A recent report by the UN Conference on Trade and Development estimated that profit-shifting by multinational companies costs developing countries $100bn a year in lost corporate income tax. Another report, by IMF researchers, estimated that developing countries may be losing as much as $213bn a year to tax avoidance.

“To fund the fight against poverty and to tackle worsening extreme inequality, we need action to ensure big companies pay their fair share, here and in the world’s poorest nations.”