The figures are staggering and mind boggling. The system has become so corrupted and so rigged as to lose $111 billion each year to rich corporations sending their money offshore, in complex tax dodging to tax havens. The total figure is estimated at $1.4 trillion in lost revenue.
What's more they're pushing the US gov for loans and other gov assistance at the same time as they're not paying tax.
Oh but it's us using welfare to do such outrageous things like eat and survive as to why western gov's find themselves short of cash, right?..... *sheesh*
Again here in Australia. Turnbull has investments in the Cayman Islands, now his assistant treasurer is having a bank sponsored fundraiser, and Turnbull still refuses to have a royal commission into the banks. How does he think this is going to look out in the electorate? I'm starting to wonder if he's nearly as out of touch as Abbott.
Here's the Oxfam report about the corporate bleeding of the US tax system called Broken at the Top, and here's a bit of it:
Tax dodging by multinational corporations cos s the US approximately $111 billion each year. But these schemes do not just harm the US. The same tactics corporations use to dodge US tax sap an estimated $100 billion every year from poor countries, preventing crucial investments in education, healthcare, infrastructure, and other forms of poverty reduction. The harm done to Americans and people living in poor countries by corporate tax dodging are two sides of the same coin.
A new analysis by Oxfam of the 50 largest public US companies sheds light on just how rigged the tax system has become and shows that these same companies are using considerable political influence t o push for even greater rewards in the forms of loans, bailouts and other government support. The analysis highlights the vast taxpayer-funded support the largest and most profitable US companies receive even as they engage in aggressive schemes to avoid paying taxes. Using corporate financial, lobbying and investor disclosures, Oxfam found:
- From 2008 – 2014 the 50 largest US companies collectively received $27 in federal lo ans, loan guarantees and bailouts for every $1 they paid in federal taxes.
- From 2008 – 2014 these 50 companies spent approximately $2.6 billion on lobbying while receiving nearly $11.2 trillion in federal loans, loan guarantees and bailouts.
- Even as these 50 companies earned nearly $4 trillion in profits globally from 2008 – 2014, they used offshore tax havens to lower their effective overall tax rate to just 26.5 % 8 , well below the statutory rate of 35% and even below average levels paid in other developed c ountries. Only 5 of 50 companies paid the full 35% corporate tax rate.
- These companies relied on an opaque and secretive network of more than 1600 disclosed subsidiaries in tax havens to stash about $1. 4 trillion offshore. In addition to the 1600 known sub sidiaries, the companies may have failed to disclose thousands of additional subsidiaries to the Securities and Exchange Commission because of weak reporting requirements.
- Their lobbying appears to have offered an incredible return on investment. For every $1 spent on lobbying, these 50 companies collectively received $130 in tax breaks and more than $4,000 in federal loans, loan guarantees and bailouts. Broken at the Top, Oxfam