CTJ in the News

International Business Times: Apple Could Owe $8B in Back Taxes to EU

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By Meagan Clark

It’s impossible to know exactly how much Apple has saved in taxes over the past three decades by shipping profit through Ireland, said Rebecca Wilkins, a senior counsel at Washington, D.C.-based think tank Citizens for Tax Justice. "Their 10-K reports what they have in total in offshore cash but doesn’t break it down by country," she told International Business Times. "They only have to break it out from U.S. and non-U.S. cash."

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Communities Digital News: Moral Hazard at the Export Import Bank

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By Richard Cameron
It’s not advantageous to point to multi-nationals like GE and CAT as being vulnerable to loss of Ex-Im credit. According to a recent report by the Senate Permanent Subcommittee on Investigations, Caterpillar off-shored $8 billion in profits to one of their subsidiaries in Switzerland, thus dodging $2.4 billion in taxes.

Citizens for Tax Justice looked at 288 profitable Fortune 500 companies and found that 26 of them, including Boeing and General Electric, paid no federal income tax in the five-year period. Skirting taxes while using taxpayers to hedge their foreign bets doesn’t paint this scheme in a favorable light. 

Daily Kos: Republicans Are in Corporations' Pockets

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By Ian Reifowitz

A study by Citizens for Tax Justice examined the most profitable 288 of the Fortune 500 companies, the 288 that turned a profit in each year between 2008 and 2012. These "corporate tax dodgers" paid an effective tax rate of only 19.4 percent. Most interestingly, given the argument that our corporate tax rate forces inversions and puts U.S. companies at a competitive disadvantage compared to their overseas counterparts, the CTJ study found that "of those corporations in our sample with significant offshore profits, two thirds paid higher corporate tax rates to foreign governments where they operate than they paid in the U.S. on their U.S. profits." Damn those stubborn facts.

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NBC News: How Does a Corporate Tax Inversion Work

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It's true that the statutory tax rate—including state and local taxes—is close to 40 percent, the highest among the developed world. But U.S. companies apply a long list of tax credits, subsidies, loopholes and other giveaways, so most of them pay much less than the top rate. Some, according to an analysis by Citizens for Tax Justice, have figured out how to pay no tax at all.

Total corporate federal taxes fell to about 12 percent of profits from U.S.-based activity in 2011, according to a Congressional Budget Office report. In a separate study, the CBO found that the average tax rate in 2011 among developed countries was 3 percent of gross domestic product—compared with 2.3 percent of GDP in the U.S.

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Business Insider: What Marc Benioff Wants in Return from Congress

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Currently the tax rate is 35% to bring overseas cash back, the full-corporate rate. Fortune 500 corporations have stashed nearly $2 trillion in offshore accounts, says think tank Citizens for Tax Justice. And tech companies have some of the biggest tax hoards.

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The Hill: Senators Throw Hail Mary at the NFL

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In fact, as the liberal group Citizens for Tax Justice argued this week, the federal tax exemption amounts to just a fraction of the public money that state and local governments often give to professional sports teams to help build stadiums.

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Reuters: U.S. Senate Democrats Propose Exit Tax for Inverting Companies

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By Emily Stephenson

Citizens for Tax Justice, a lobby group that has floated a similar idea, said individuals pay an “exit” tax on unrealized capital gains if they renounce their U.S. citizenship. The inversion plan is similar and would remove a “significant incentive” for companies to move abroad, the group argued in a paper earlier this month.

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The Hill: Corporations Should Pay What They Owe When They Go

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By Steve Wamhoff, CTJ Legislative Director

If the all-American fast food chain Burger King, with its thousands of restaurants in the United States, can claim to be a foreign company for tax purposes, our corporate tax system is in real trouble.

The crisis of corporate inversions is now apparent even to those who aren’t connected to the boring details of tax policy. The specifics of inversions are clear to everyone: A U.S. corporation merges with a smaller foreign company and claims the foreign country as its address, even though the vast majority of the business continues to be carried out and managed in the U.S. The public outrage is so apparent that Walgreen Co. backed off its plans to invert.

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New Jersey Today: Everyone Who Calls for Repealing the Corporate Tax Is Wrong

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Every now and then something happens — a Senate investigation into Apple’s tax dodging, Burger King’s plan to become Canadian — that demonstrates that our corporate income tax is very ill. Every time, pundits debate how to cure this disease, offering various tax reform proposals.

And every time, a few suggest we shoot the patient, that is, repeal the corporate income tax, which is expected to raise $4.6 trillion over the coming decade.

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Portland Press Herald: Reports That U.S. Companies Are Heavily Taxed Don't Jibe with the Numbers

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I finished reading Steve Robinson’s Aug. 30 column, “Learn Burger King’s lesson – drop the corporate income tax,” dried my eyes and vowed to write my congressional representatives, demanding they do something to rid our “uncompetitive tax code” of the “rotten fruit” that prevents America’s corporations from making an honest buck without having to move their headquarters to foreign countries to survive.

Imagine having to pay a corporate tax rate of almost 40 percent, the highest rate in the industrialized world. It turns out that imagining is exactly what has to be done.

A recent study published by Citizens for Tax Justice showed that 300 of the Fortune 500 companies paid an average federal tax of 18.3 percent. Thirty of the companies, including Wells Fargo, Verizon, Boeing and General Electric, paid no federal income taxes in 2008, 2009 and 2010.