Month: July 2006

July 14, 2006 02:24 PM | Permalink |

What is the United States trying to do when it comes to taxing multinational corporations?

Companies that do business only in the United States have to pay federal income taxes on their profits (at least as the tax code defines “profits”). We want multinational corporations—both American-owned and foreign-owned—to pay taxes on their U.S. earnings, too. That’s the main goal.

In addition, at least some of the time, we try to make American-based multinationals pay U.S. taxes on the profits they earn in low-tax foreign tax havens. The purposes here are both to raise revenue and to avoid giving American companies a tax incentive to move their operations—or artificially shift profits—to low-tax foreign countries.

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July 11, 2006 02:18 PM | Permalink |

Having slashed personal income taxes, primarily on the wealthy, over the past six years, the Bush administration would like the public to believe that tax revenues are nonetheless doing just fine, and that the budget deficit is not really a problem. Nothing could be further from the truth, as a close look at the administration’s own new estimates in its July 11 “Mid-session Review” reveals.

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