Corporations Calling to ‘Fix the Debt’ Want $134 Billion in Tax Breaks

Rebecca Leber
Think Progress / News Report
Published: Wednesday 14 November 2012
“A territorial tax system actually rewards businesses that offshore jobs and investments.”
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Ahead of negotiations over the so-called “fiscal cliff” and what promises to be another fight over raising the debt ceiling, 63 CEOs representing the largest U.S. corporations, including several Wall Street firms, launched a campaign to supposedly “fix the debt.” However, this campaign calls for additional corporate tax cuts by switching the U.S. to what’s known as a “territorial” corporate tax system, along the lines of that proposed by Mitt Romney.

According to a report by Institute for Policy Studies, the corporations involved could gain up to $134 billion in windfalls if Congress approves such a system, which exempts foreign earnings from the U.S. corporate income tax:

– The 63 companies that are publicly held could gain up to $134 billion in windfalls. The biggest potential winner is General Electric, which would earn $35.7 billion on its overseas earnings of $102 billion.

A territorial tax system actually rewards businesses that offshore jobs and investments. Corporate tax rates are already at a 40-year low of just 12.1 percent. Revenue from corporate taxes has plunged, despite a 60-year high in corporate profits.



OH COME ON....WHAT ARE YOU

OH COME ON....WHAT ARE YOU PEOPLE REALLY SAYING...ALL THE PEOPLE WHO RUN WALL STREET ARE CROOKS AN SHOULD BE IN PRISON...THAT CAN'T BE TRUE...I THOUGHT THE ONLY CROOKS WERE IN WASHINGTON D.C......

What? That was too huge. The

What? That was too huge. The tax is so hard for the people to pay then.

Our government was corrupt

Our government was corrupt for 8 years because Bush and Cheney distorted our federal tax code to favor the corporations that outsourced American jobs and granted the richest American citizens tax breaks that they did not ask for. In addition, they caused the Iraq war based on contrived information that Weapons of Mass Destruction existed in that country. In addition there was the Afghanistan debacle. Both of these wars were conducted on money borrowed from China and the real purpose of them was to continue uninterrupted importation to the US of crude oil from the Mideast countries so that Exxon and the other four big US oil companies could continue to enjoy their massive profits and exorbitant tax breaks. Cheney’s Halliburton made enormous profits from their participation in these wars. All of this was not enough for their greed. So they refused to enforce financial regulations and that resulted in the billions of dollars of fraudulent Mortgage Backed Securities (MBS’s) assembled by Goldman Sachs that were sold to unsuspecting investors and banks all over the world. Of course as we all know as soon as it was discovered that these MBS’s were made up mostly of mortgages that were destined to be foreclosed on our big banks had to be bailed out with tax payer money. (To throw salt in our wounds, Goldman Sachs shorted the MBS investment packages as soon as they were sold and made a really big bundle of dough on their failure.) So the debts incurred from two unnecessary wars plus the financial crash resulting from fraudulent investment packages plus the horrendous tax breaks given to the very rich plus the outsourcing of American jobs that destroyed our middle class all adds up and the sum total resulted in the near depression and still existing recession we have been experiencing since 2008.
So in addition to the foregoing, where are we now? Let me put it this way: I am 78 years old and from when I was only four years old I remember my father saying "Money talks"! Of course that was only a colloquialism of the time that meant exclusively “You can get what you want if you paid enough money for it!” However, now that I am a mature, well educated and experienced adult, I know the difference between speech and money. However, our current Supreme Court Justice Scalia (who naively took the old colloquial expression literally) has ruled that "money is speech". This gross distortion coupled with another of his gross distortions; i.e., "Corporations are people" has encouraged and made legal an infinite amount of money (that could total billions of dollars or more) that U.S. Corporations can contribute to U.S. elected members of our U.S. Congress to assure adoption of their preferred policies and legislation. Our Supreme Court voted that their action is protected by our Constitution’s freedom of speech proviso. As a result, the Corporations' massive amounts of money funneled through an inordinately large number of lobbyists to our members of Congress "speaks" so loudly that the voices of ordinary U.S. citizens are not heard or ignored by our elected Representatives and Senators. This is not Democracy (government by the people). It is a form of Plutocracy (government by the wealthy). This is the insidious compelling and all powerful force that is the real problem causing the gridlock we have been experiencing in our U.S. Congress. I respectfully submit that nothing is going to improve in Washington D.C. until this crippling situation is changed. And, the ONLY way it can be changed is to take the money out of American politics. To make this change, because our Supreme Court approved what Justice Scalia maintains, we must amend our U.S. Constitution. The basic Amendment is set forth in http://signon.org/sign/take-money-out-of-politics - so click on this link or paste it into your browser and see if you would like to sign the petition. Enough signatures are needed to get a two thirds vote in both our House of Representatives and Senate. Again - http://signon.org/sign/take-money-out-of-politics.

prob with your solution

prob with your solution sunflowerbio co will just move hq a better solution USA sales divide by world sales times world profits and no credit for foreign taxes just cost deduction and make them add in sub co that they have substainal control

As I understand it, General

As I understand it, General Electric hasn't paid any corporate income tax for several years, and has received tax refunds from Uncle Sam. I guess that hasn't been enough. How about an alternative where corporations are taxed in their home country as a whole unit, regardless of where and to which divisions the income is credited. I believe it's called Whole Company Accounting.

Sunflowerbio: if you did

Sunflowerbio: if you did that, all the companies would just move their "home" to the Cayman Islands... They already do it in th US with corporate registrations, and the result is a race to the bottom for insurance and banking regulation.

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