Senator Elizabeth Warren says the tax code favors the wealthy. (photo: Reuters)
22 August 14
uge 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.
1 comment:
Yes, but they still pay taxes on the profits made in the USA...
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