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When Thanksgiving rolls around, no one wants to watch someone else eat all the turkey and then have to pick up the grocery bill all by themselves. But that’s what’s happening in our nation’s budget debate—highly profitable multinational corporations are using special tax loopholes, credits, deductions, and outright giveaways to avoid paying their fair share of taxes while asking the rest of us to pick up the tab for fixing our nation’s budget challenges through spending cuts to key investments that help grow the economy. Even worse, at a time when many families will be celebrating their Thanksgiving blessings or sharing those blessings with less fortunate friends and neighbors, many in Congress are trying to protect these tax loopholes while simultaneously cutting federal food assistance for hungry families.

That’s why N.C. Policy Watch and the N.C. Budget and Tax Center are continuing to shine a light on corporate tax dodging. In recent years, corporate profits have neared record highs while corporate tax collections are at a 30-year low, so now is the time to raise new revenues, rather than asking hungry families to bear the brunt of addressing our nation’s budget challenges. And an excellent source of new revenues involves the billions of dollars in corporate tax loopholes, deductions, credits, and outright giveaways that allow too many multinational corporations to avoid paying their fair share of taxes. So instead of giving all the turkey to profitable corporations and asking the rest of us to foot the bill, let’s ask these profitable companies to pay their fair share for Thanksgiving dinner.

To underscore this message, N.C. Policy Watch and the N.C. Budget and Tax Center are continuing to profile a number of corporate tax avoiders with strong connections to North Carolina (Click here to read previous profiles of Duke Energy, Merck & Co. and International Paper).

And keeping with the holiday theme of food, this month, we’re focusing on the highly profitable fast food giant Yum! Brands, revealing the following:

  1. the size and scope of their businesses,
  2. the taxes they have avoided paying in recent years, and
  3. the methods they use to accomplish this.

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The government shutdown finally ended last week, but the fight for a balanced approach to the federal budget continues. As part of the deal struck last week, Congress agreed to negotiate a comprehensive budget agreement that addresses sequestration and opens the door for new revenues. Perhaps the best potential source of new revenues comes from reining in the special tax loopholes, deductions, and outright giveaways that allow too many corporations to avoid paying their fair share in taxes.

Over the last year, we’ve profiled some of these tax loopholes, along with the corporations that use them to avoid their responsibilities. This month’s issue takes a look at IBM, which earned $45 billion in profits over the past five yeas, and managed to shelter almost $20 billion of those profits in offshore bank accounts to avoid US taxation. As a result, Big Blue managed to lower its actual effective tax rate to 5.8 percent, well below the statutory corporate tax rate of 35 percent.

As long as corporations like IBM are able to avoid paying their taxes, the rest of us will be asked to pick up the tab for addressing our nation’s budget challenges through spending cuts to key investments that grow our economy and protect our most vulnerable.

For more details, see the profile on IBM.