Repatriating Taxes: An Unwarranted Gift to Unpatriotic Corporations

http://www.commondreams.org/view/2014/06/14



To avoid paying U.S. taxes, more and more companies are abandoning their incorporation in the U.S. and shifting their registrations to foreign countries.

Repatriating Taxes: An Unwarranted Gift to Unpatriotic Corporations
by Scott Klinger
Published on Saturday, June 14, 2014 by Common Dreams

June 14 is Flag Day. It marks an important day in the nation’s history: the Continental Congress passed a resolution that established the nation’s first flag on June 14, 1777. This used to be a national secular holiday, when most households showed their patriotism and loyalty to the United States by flying its flag. But the nation doesn’t seem to be in a celebratory mood these days, and Flag Day may not offer a lift to our national pride.

We have a growing pile of unmet needs and yet are constantly told we can’t afford to address them. In recent days, bridges along major roadways have been closed because the lack of ongoing maintenance has made them too unsafe to travel. We’ve watched as the number of long-term unemployed denied access to emergency unemployment benefits has passed 3 million. And we’ve seen the annual struggle of cities seeking funds for summer jobs programs for youth since federal funding has dried up.

We are told there is no money for these important public services.

And yet, U.S. corporations reported record profits and the median pay of large-company CEOs has reached record levels. Corporate profits as a share of the total economy exceeded 12 percent last year while their share of federal taxes as a percent of the economy shrank to less than two percent, near an all-time low. A recent study by Citizens for Tax Justice found that, over the last five years, the average large corporation in America paid less than 20 percent of its profits in federal income taxes, substantially less than the posted 35 percent corporate tax rate and less than many middle-class families pay.