(Original Post)
By Brendan Sasso - 11/15/11 01:35 PM ET
The Communications Workers of America (CWA) accused Verizon on Tuesday of not paying its fair share of federal taxes.
Verizon paid no federal taxes between 2008 and 2010, and actually received a $1 billion rebate from the U.S. Treasury, according to a report prepared by the Citizens for Tax Justice and released by the CWA on Tuesday.
Robert McIntyre, the report’s lead author, said that tax rebates to companies like Verizon are simply “wasted dollars, that could have gone to protect Medicare, create jobs and cut the deficit. Too many corporations are gaming the system at the expense of the rest of us.”
Edward McFadden, a spokesman for Verizon, said that counting both state and federal taxes, Verizon actually paid $1.79 billion in taxes between 2008 and 2010. Additionally, its federal rate was lower in those years because of deferred taxes that it will pay later, he said.
"This is a rehash of the same inaccurate and politically motivated statements that union-orchestrated front groups like the [Citizens for Tax Justice] have been making for some time," McFadden said in an email. "The fact is, Verizon fully complies with all tax laws and pays its fair share of taxes."
But Ron Collins, chief of staff for CWA, said the telecom company is taking advantage of loopholes. "The 99 percent are picking up Verizon’s tax tab," he said, using the rallying cry of the Occupy Wall Street movement that argues the ultra-wealthy are exploiting the other 99 percent of the population.
On a conference call with reporters on Tuesday, the CWA said Verizon has taken advantage of the "Reverse Morris Trust" rule, which allows companies to not pay taxes on assets it sells off.
The labor leaders said they are urging the congressional supercommittee on deficit reduction to end the Reverse Morris Trust rule to help the government collect more revenue.
The CWA said the report is timely because Congress is trying to find ways to close the nation's budget deficit, but McFadden suggested a different motive for the report's timing.
"Isn't it interesting that this report comes out while we're in the midst of negotiations," McFadden said, referring to ongoing contract negotiations between Verizon and its workers.
The workers went on strike for two weeks in August but are still negotiating a new labor contract.