WASHINGTON, Oct. 11 – “Senator Levin’s new report reaffirms that rewarding companies that artificially shifted profits overseas with special tax treatment is a wasteful giveaway to corporate executives that sacrifices deficit reduction for no public benefit to the economy.
“The more than 150 corporate lobbyists running around Capitol hill pushing for the so-called repatriation tax holiday want us to believe that it will create jobs, even though the last time it was done, the 15 corporations that benefited most shed over 20,000 jobs shortly after. The new proposed handout is estimated to cost taxpayers $78.7 billion.
“According to the report, a substantial share of the repatriated profits in 2004 came from tax haven countries like the Cayman Islands, where corporations stash profits to avoid paying the taxes they owe in the U.S. We should not reward corporations that take advantage of American education, defense, and infrastructure, and then shirk their tax responsibility.
“When corporations avoid taxes, the rest of us pick up the tab. Small businesses and other individual tax filers must each shoulder an extra $434 tax burden on average to make up for corporate tax dodging according to an earlier report released by U.S. PIRG.
“The last repatriation holiday led to even more aggressive off-shoring by large companies, anticipating another giveaway around the corner. Congress should say no this time, and not let the American taxpayer get fooled again.”
Click here for a copy of the report.
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U.S. PIRG, the federation of state Public Interest Research Groups, is a non-profit, non-partisan public interest advocacy organization.
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