Archives

NC Budget and Tax Center

Nearly half of likely North Carolina voters familiar with the tax cut package state lawmakers enacted this year oppose it, while only 42 percent support it. Don’t take our word for it. That’s what a poll by a prominent supporter of the package shows.

Of course, the group that commissioned the poll, Americans for Prosperity, chose to highlight other results that were more favorable to its position. But those results came only after the respondents were given one-sided information about the tax package, which slashed income taxes for profitable corporations and the wealthy.

Among those who had heard “a lot” or “some” information about the tax package even before the pollster called, 47% opposed it. Forty-two percent supported it and 11% weren’t sure. Read More

NC Budget and Tax Center

Microsoft, the software titan familiar to most Americans, has benefited handsomely from using loopholes in the federal tax code to avoid paying its fair share of corporate income taxes. The corporation has avoided paying $4.5 billion in U.S. income taxes in recent years, according to evidence presented by the Senate Permanent Subcommittee on Investigations (PSI).

To avoid paying income taxes, Microsoft “sold” the right to market its products in the Americas to an offshore subsidiary, which then “licensed” back to the parent company the right to sell its products in the United States. The effect was that in 2011, almost half of the value of Microsoft’s U.S. sales was channeled offshore, and through this “transfer-pricing” shell game the company avoided $4.5 billion in U.S. income taxes over three years.

Senator Carl Levin’s Stop Tax Haven Abuse Act (S. 1533) bill would close two tax loopholes that corporations use to shuffle their intangible property, like licenses and patents, to offshore subsidiaries and dodge paying the taxes they owe. Closing these two loopholes would raise $23 billion in revenue over 10 years. Eliminating such corporate tax loopholes represents a positive step forward in ensuring that profitable corporations such as Microsoft, among others, pay their fair share of taxes.

NC Budget and Tax Center

The Stop Tax Haven Abuse Act (S. 1533) would raise about $220 billion over the next decade by closing tax loopholes that encourage U.S. corporations to move jobs, profits and operations offshore and allow them to not pay their fair share of taxes.  As my colleague has noted, these costly tax breaks are undermining our ability to invest in the foundations of economic opportunity – an educated workforce, research and development, and healthy families.  Across the board cuts, known as sequestration, are taking their toll in North Carolina and closing corporate tax loopholes is the best way to replace a second round of cuts.

Here is just one example of a company that would no longer be able to benefit from tax loopholes if the Stop Tax Haven Abuse Act is passed. Read More

NC Budget and Tax Center

Blog contribution provided by Tazra Mitchell, Public Policy Analyst with the NC Budget and Tax Center

The federal budget process would become a bit more stable and predictable if the recently introduced Stop Tax Haven Abuse Act is enacted. This bill, which has been introduced by Senator Carl Levin, would raise at least $200 billion over the next 10 years by closing corporate tax loopholes that allows multinationals to shield their offshore profits from taxation. The bill’s passage would deliver a more balanced approach to addressing the federal deficit and help prevent a second round of across-the-board cuts that will only further harm the nation’s most vulnerable citizens at a time when hardship remains high. Read More

NC Budget and Tax Center

Poverty continues to impact 1 in 5 North Carolinians, according to 2012 Census Bureau Data released last week. The extent of poverty would be far greater without the safety net and work supports, however. This post is part of a blog series that will explain how the new poverty data demonstrates the important role public programs play and the need for continued support. Read the other posts in this series on SNAP, Social Security, Unemployment Insurance, and the EITC.

As poverty continues to grow across many of North Carolina’s communities, Congress should reject federal budget policies that ask our poorest and most vulnerable citizens to bear the greatest load in putting our nation’s fiscal house in order. Congress needs to chart a course away from asking poor children, hungry seniors, and working families to solve our nation’s budget challenges on their own—through spending cuts to key investments in food assistance, early childhood education, and healthcare—and instead, take a balanced approach to the federal budget, one that includes new revenues and does not increase poverty.

Read More