Much has been made of corporate taxes lately. The Republicans will tell you that corporate taxes are too high. That is simply a lie. The actual taxes paid by American corporations is less than in most other industrialized countries, and a significant portion of corporations don't pay any taxes at all -- even though they made from millions to billions in profits. In her latest e-mail to her followers, Senator Elizabeth Warren (D-Massachusetts) lays out the truth about corporate taxes -- that too many corporations are "freeloaders", thanks to a rigged tax system. Here is what she said:
Huge corporations hire armies of lawyers and lobbyists to create, expand, and protect every last corporate loophole.
That's how we end up with a tax code that makes teachers and bus drivers and small business owners pay, but that allows some huge American corporations to make billions of dollars and not pay a single dime in taxes.
Simply put, the tax code is rigged.
Apparently, even this rigged game doesn't go far enough for some corporations. Those companies are taking advantage of a new move: a loophole that allows them to maintain all their operations in America, but claim foreign citizenship so they can cut their US taxes even further.
That means American companies can hire a bunch of lawyers and Wall Street bankers, fill out some paperwork, and dodge their US taxes.
Tax lawyers call this process a "corporate inversion." But don't let that bland name fool you – these companies are renouncing their American citizenship, turning their backs on this country, simply to boost their profits.
If a person did that, we'd call them a freeloader and insist that they pay their fair share. And that's exactly what our tax laws do for people who renounce their American citizenship. But when corporations do it, they don't suffer any consequences at all.
Forget whether corporations are people – in this corner of the tax code, we're treating corporations better than people.
That's not right. That's why I've teamed up with Senator Levin and more than a dozen of our Democratic colleagues to introduce the Stop Corporate Inversions Act. The bill is simple: it allows American corporations to renounce their citizenship only if they truly give up control of their company to a foreign corporation and truly move their operations overseas.
In Massachusetts and across the country, we invest in public education to produce millions of skilled workers. We invest in infrastructure, in our roads and bridges and ports, making it easier for our companies to move products to market. We invest in scientific and medical research, giving our companies access to the most innovative and cutting-edge technologies.
America is a great place to do business because of the investments we have made together. We invest together to make America a place where any kid will have a chance to come up with an idea and turn it into the next great American company.
The companies that are pursuing these corporate inversions know all of this. That's why they are not actually leaving America behind. They just don't want to pay for it.
Our achievements aren't magic. They didn't simply happen on their own or through dumb luck. America works – our government works – our democracy works – because we all pitch in and do our part to build the things that none of us can build alone. The things that give everyone a chance to succeed.
We've had enough of rich corporations taking whatever they want and expecting everyone else to pick up the pieces. The time for freeloading is over.
Elizabeth
That's how we end up with a tax code that makes teachers and bus drivers and small business owners pay, but that allows some huge American corporations to make billions of dollars and not pay a single dime in taxes.
Simply put, the tax code is rigged.
Apparently, even this rigged game doesn't go far enough for some corporations. Those companies are taking advantage of a new move: a loophole that allows them to maintain all their operations in America, but claim foreign citizenship so they can cut their US taxes even further.
That means American companies can hire a bunch of lawyers and Wall Street bankers, fill out some paperwork, and dodge their US taxes.
Tax lawyers call this process a "corporate inversion." But don't let that bland name fool you – these companies are renouncing their American citizenship, turning their backs on this country, simply to boost their profits.
If a person did that, we'd call them a freeloader and insist that they pay their fair share. And that's exactly what our tax laws do for people who renounce their American citizenship. But when corporations do it, they don't suffer any consequences at all.
Forget whether corporations are people – in this corner of the tax code, we're treating corporations better than people.
That's not right. That's why I've teamed up with Senator Levin and more than a dozen of our Democratic colleagues to introduce the Stop Corporate Inversions Act. The bill is simple: it allows American corporations to renounce their citizenship only if they truly give up control of their company to a foreign corporation and truly move their operations overseas.
In Massachusetts and across the country, we invest in public education to produce millions of skilled workers. We invest in infrastructure, in our roads and bridges and ports, making it easier for our companies to move products to market. We invest in scientific and medical research, giving our companies access to the most innovative and cutting-edge technologies.
America is a great place to do business because of the investments we have made together. We invest together to make America a place where any kid will have a chance to come up with an idea and turn it into the next great American company.
The companies that are pursuing these corporate inversions know all of this. That's why they are not actually leaving America behind. They just don't want to pay for it.
Our achievements aren't magic. They didn't simply happen on their own or through dumb luck. America works – our government works – our democracy works – because we all pitch in and do our part to build the things that none of us can build alone. The things that give everyone a chance to succeed.
We've had enough of rich corporations taking whatever they want and expecting everyone else to pick up the pieces. The time for freeloading is over.
Elizabeth
P.S. As of this morning, we have 992,932 Facebook fans fighting to level the playing field for working families. Can you help us reach a million? If you haven't already done so, please "like" our page or ask your friends to be the ones that push us over the top. Thanks!
We, the People and the Country, would be much better off if the money that corporations spend on tax avoidance and lobbying was paid in taxes instead. Corporations would still make the same profits, and our needs would be better met.
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