Citizens for Tax Justice opposes SB 602 because it would have a detrimental effect on both the fairness and adequacy of Maryland's state tax system. If enacted, SB 602 would gradually cut Maryland's estate tax collections by tying the state's estate tax exclusion to federal law. This testimony emphasizes how coupling the Maryland estate tax exclusion to federal rules would reduce much needed state revenue, make the state's already-unfair tax system even more so and would only benefit a very small fraction of the best-off Marylanders.
Report Finding Massive Corporate Tax Avoidance Released Same Day as Congressional Plan to Slash Corporate Tax Rate
The premise that our corporate tax is too burdensome on companies is wrong, and my colleagues and I prove it in a report that we have released today. This new report from Citizens for Tax Justice (CTJ) and the Institute on Taxation and Economic Policy (ITEP) finds that most profitable U.S multinational corporations actually pay higher effective tax rates in the foreign countries where they do business than they pay here in the U.S.
Many of America's Most Profitable Corporations Pay Little or No Federal Income Taxes; Multinationals Pay Higher Rates Abroad Than in the U.S
International Business Machines (IBM) has paid U.S. corporate income taxes equal to just 5.8 percent of its $45.3 billion in U.S. profits over a five year period from 2008 through 2012. This finding is consistent with recent revelations by reporters Alex Barinka and Jesse Drucker of Bloomberg News that suggest IBM engages in gimmicks to make its U.S. profits appear (to the IRS) to be earned in low-tax or no-tax countries, in order to avoid federal corporate income taxes.
Comments submitted by Citizens for Tax Justice on the Senate Finance Committee's discussion draft on international tax reform.
Congress should end its practice of passing, every couple of years, a so-called "tax extenders" bill that reenacts a laundry list of tax breaks that are officially temporary and that mostly benefit corporations, without offsetting the cost. This report explains that none of the tax extenders can be said to help Americans so much that they should be enacted regardless of their impact on the budget deficit and other, more worthwhile programs.
Business lobbyists are pushing Congress to enact tax "extenders" -- a bill to extend several temporary tax breaks for business that expire at the end of this year. The largest of those provisions, the federal research and experimentation tax credit, is a tax subsidy that is supposed to encourage businesses to perform research that benefits society. This report explains that the research credit is riddled with problems and should be either reformed dramatically or allowed to expire.
Since 2010, American Express has boosted itself as a supporter of small businesses, by promoting "Small Business Saturday" as a counterpart to Black Friday. But American Express is no friend of American small business. Not only does it charge merchants high swipe fees, but it also uses and wants to expand offshore tax loopholes that most small businesses can't use and want to close.
Boeing, Recipient of the Largest State Tax Subsidy in History, Paid Nothing in State Corporate Income Taxes Over the Past Decade
On November 12th, Washington Governor Jay Inslee signed into law the largest state business tax break package in history for Boeing. The new law will give Boeing and its suppliers an estimated $8.7 billion in tax breaks between now and 2040. Even before this giant new subsidy, Boeing has already been staggeringly successful in avoiding state taxes. Over the past decade, Boeing has managed to avoid paying even a dime of state income taxes nationwide on $35 billion in pretax U.S. profits.
Twitter and Other Tech Firms Poised To Shelter $11 Billion in Profits Using Stock Option Tax Loophole
This CTJ report explains how twelve emerging tech firms (including Twitter, which has scheduled its IPO for this week) stand to eliminate all income taxes on the next $11.4 billion they earn--giving these companies $4 billion in tax cuts.
This report describes a tax reform plan that would raise $2 trillion over a decade, make the tax code more progressive, and end tax incentives for corporations to shift jobs and profits offshore.
Most Americans and politicians probably like the idea of "tax reform," but not everyone agrees on what "tax reform" means. If Congress is going to spend time on a comprehensive overhaul of America's tax system, this overhaul should raise revenue, make our tax system more progressive, and end the breaks that encourage large corporations to shift their profits and even jobs offshore.
Congressman Delaney's "Rebuttal" on His Proposed Tax Amnesty for Offshore Corporate Profits Continues to Misinform
In July, a letter signed by thirty national organizations and a report from Citizens for Tax Justice (CTJ) both warned members of Congress about a proposal from Congressman John Delaney of Maryland that would have the effect of rewarding corporations that use offshore tax havens to avoid U.S. taxes. Rep. Delaney's staff responded with a "rebuttal" that is itself based on misinformation about corporate tax law and about the likely effects of the proposal, which would provide a tax amnesty for offshore profits for corporations that agree to finance an infrastructure bank.
Between 2008 and 2012, FedEx reported $9.381 billion in US pretax income, and paid just $395 million in current federal income taxes. This computes to a 4.2 percent effective tax rate over this period.
In recent years, the corporate tax reform debate in the nation's capital has been invaded by an army of acronyms such as T.I.E., A.C.T. and R.A.T.E., representing different businesses and corporate interest groups. These groups seek to rebrand and build momentum for a corporate tax reform that benefits corporate rather than public interests.
This report evaluates the ten largest tax expenditures for individuals based on progressivity and effectiveness in achieving non-tax policy goals - which include subsidizing home ownership and encouraging charitable giving, increasing investment, encouraging work, and many other stated goals.
The corporate income tax is a progressive source of revenue and Congress should increase this revenue by limiting or eliminating breaks that allow large, profitable corporations to avoid taxation. The most important of these are breaks for corporate profits that are generated offshore or claimed to be generated offshore. Lawmakers should also oppose proposals discussed today that would expand these breaks and result in more corporations relying on offshore tax havens.
The latest proposed tax amnesty for repatriated offshore profits would create an infrastructure bank controlled by the most aggressive corporate tax dodgers.
Some observers have asked why we need a corporate income tax in addition to a personal income tax. They use a deceptively simple argument that ignores the massive windfalls that wealthy individuals would receive if there was no corporate income tax.
Recent Congressional hearings on the international tax-avoidance strategies pursued by the Apple corporation documented the company's strategy of shifting U.S. profits to offshore tax havens. But Apple is hardly the only major corporation that appears to be engaging in offshore-tax sheltering: seventeen other Fortune 500 corporations disclose information, in their financial reports, that strongly suggests they have paid little or no tax on their offshore holdings.