14 Apr 2016

How Broken is the World's Tax System?

A recent Oxfam report, Broken at the Top: How America’s dysfunctional tax system costs billions in
corporate tax dodginguses the top 50 US companies to expose just how broken the tax systems of the world are.
"US corporate giants such as Apple, Walmart, and General Electric have stashed $1.4 trillion in tax havens... The sum, larger than the economic output of Russia, South Korea and Spain, is held in an “opaque and secretive network” of 1,608 subsidiaries based offshore." - Guardian
The $1.4 trillion held offshore contrasts with the $1 trillion paid in tax by the top 50 US firms between 2008 and 2014. However, the same companies had also enjoyed a combined $11.2 trillion in federal loans, bailouts, and loan guarantees during the same period. This meant the firms had reduced their effective tax rate from the US headline rate of 35% to an average of 26.5%.

And some of the saving was spent on lobbying the US government for great tax-payer funded handouts. The top 50 US firms spent $2.6 billion between 2008 and 2014 on lobbying the US government, and they get massive bang for their buck!
“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.”
So not only do they not pay tax on their profits, and keep vast reserves in tax havens, they get enormous handouts from the government, and have massive influence over govt policy in their own favour. A company with vast reserves of cash should not get government subsidies.

You think America is a democracy? It clearly is not a democracy, it's an oligarchy with an entertainment wing. While everyone is distracted by Trump & Co. the corporations are stealing all the money.


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Keep is seemly & on-topic. Thanks.