Tuesday, March 12, 2013

taxing rules

Why should workers have to sacrifice while highly profitable corporations are using accounting tricks and off-shore tax havens to avoid paying their tax? Companies don't have to pay taxes on profits from overseas subsidiaries if the money isn't brought back to the U.S.

The Wall Street Journal looked at 60 U.S. companies that parked a combined $166 billion offshore last year, allowing 40% of their annual profits to escape U.S. taxes. In an Bloomberg's analysis of 83 companies, there was a $183 billion expansion over the past year in non-U.S. holdings, for a combined total across the 83 companies of $1.46 trillion in offshore profits. Figures from both papers show an increase from last year in offshore profits  — up 15% using WSJ figures and a 14.4% increase using Bloomberg's data. The companies with the five biggest offshore holdings on both the WSJ and Bloomberg lists are General Electric, Pfizer, Microsoft, Merck and Johnson & Johnson.

 Tax rules have allowed over $1 trillion to get stashed in offshore profits while they tell the rest of us to tighten our belts.

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