Bloomberg News has a fascinating report out today about how Google, Facebook, IBM, Oracle and others shift billions in profits through Ireland to the Netherlands and then on to offshore tax havens like the Caymans. The end result? These US companies avoid billions of dollars in federal corporate taxes and avoid billions more of taxes in Europe. Another example that there’s one rule for the “little people” and another for those with millions or billions of dollars at their disposal. Small companies in the US have to pay full taxes on their earnings along with the rest of us individuals. It’s apparently only when we get really wealthy that we can shift money to Caymans and – legally – avoid paying our fair share of what it takes to support our democracy:
The earnings wind up in island havens that levy no corporate income taxes at all. Companies that use the Double Irish arrangement avoid taxes at home and abroad as the U.S. government struggles to close a projected $1.4 trillion budget gap and European Union countries face a collective projected deficit of 868 billion euros.