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Separate from whether there is a need for change or improvements reports like this are simply ways to stir the masses. There are legitimate reasons why compani
by larrys 12y ago
Separate from whether there is a need for change or improvements reports like this are simply ways to stir the masses.
There are legitimate reasons why companies do many things and for sure there is a continuum from dodging to legitimate. The problem is that reports like this present things as one sided as if everything is simply taking advantage of the system.
You can do this with any subject matter that people don't know about. And then everyone piles on because of course "we know these guys are bad and they don't do the right thing".
A few (small) examples:
"Fedex: Received $10.3 billion in federal contracts from 2006-2012"
Fedex bid on a government contract and was the low bidder or supplies a product or service that the government needs. It's really that simple. The tax that they pay or don't pay has nothing to do with this and making statements like that (to support one's position) is done simply to get "the jury on your side" by pulling at obvious heart strings.
"Microsoft: Saved $4.5 billion in federal income taxes from 2009-2011 by transferring profits to a subsidiary in the tax haven of Puerto Rico. Had $60.8 billion in profits stashed offshore in 2012 on which it paid no U.S. taxes; reported it would owe $19.4 billion if profits are brought home."
Puerto Rico was a tax haven for a reason. In particular many Pharma companies located operations in PR which created great benefit to that area. Now that those tax advantages have gone away PR has had deep problems. Simply trying to cherry pick things like this in order to prove a point isn't helpful.
"ExxonMobil: Paid just a 15% federal income tax rate from 2010-2012, less than half the official 35% corporate tax rate"
Seems to imply that companies are supposed to be paying 35% by comparing to that number. How many people, on personal income taxes, pay anywhere close to the "rack" rate? Note the use of "official" as if to imply "what they should be doing".
- mikeyouse 12y ago> Fedex bid on a government contract and was the low bidder or supplies a product or service that the government needs. The implication is that Fedex is bidding on government contracts while actively avoiding paying taxes. Their bids would be less competitive if they had to account for paying the 'appropriate' rate. > Puerto Rico was a tax haven for a reason. In particular many Pharma companies located operations in PR which created great benefit to that area. Puerto Rico's unemployment rate has been above 10% for over 30 years. I suppose you can make the argument that it would be worse but for these tax havens, but good luck with that. > How many people, on personal income taxes, pay anywhere close to the "rack" rate? Note the use of "official" as if to imply "what they should be doing". Nearly everyone does. The majority of Americans (upwards of 65%) take standard deductions and their effective tax rate is identical to the prescribed rate based on their income. The next largest chunk take obvious deductions (mortgage, charity, etc.) but no further.