Wednesday, September 3, 2014

NEA Takes On Corporate Tax Loopholes

April 10, 2012 by twalker  
Filed under Education Funding, Featured News, Top Stories

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By Tim Walker

As the deadline approaches for Americans to file their taxes, a significant portion of profitable corporations may not pay a dime. The reason? Corporate tax loopholes.

Through a new campaign, the National Education Association is exposing the true cost of corporate tax loopholes…a shrinking middle class and the erosion of critical services, including public education. Part of the effort includes a one-minute animated short called The Hole and an online petition for the public to show support for closing corporate tax loopholes.

Corporate tax loopholes come in a variety of forms. One allows corporations to indefinitely defer U.S. taxes on offshore profits, incentivizing the manipulation of profits in an attempt to show a greater portion as being made overseas. Another large loophole lets companies deduct the costs of investments in vehicles and other equipment faster than they wear out. This allows companies to basically double dip by getting a loan to buy the equipment, and then write off both the interest and depreciation. Yet another loophole serves as a subsidy to the highly-profitable oil and gas industry.

As more corporations avoid contributing to state treasuries, the burden of paying for budget shortfalls has been placed on average working families and critical public services. Over the past few years, education budgets have been slashed across the country as lawmakers declare their states to be “broke.”

A recent report by the Citizens for Tax Justice (CTJ) and the Institute on Taxation and Economic Policy (ITEP) reveals why so many Americans are outraged. The study shows that states may have lost a significant amount in corporate tax revenue during the peak recession years of 2008-2010. In analyzing the tax returns of 265 of the richest S&P 500 corporations during those years, the CTJ and ITEP found that the companies reported $1.33 trillion in domestic profits, but paid states only about half of what they would have if they had paid at the average corporate income tax rate of all states. The report also found that 68 corporations reported paying zero state corporate taxes in at least one year between 2008 and 2010.

“Students and working families are feeling the adverse effects of a carefully crafted, perfect storm,” said Dennis Van Roekel, president of NEA. “At home, families are struggling to hold on to what they have. At school, students are confronted with cuts to the critical resources they need to succeed. Big businesses are sitting on record profits, and are taxed at historically low rates. It is time we put people ahead of profits.”

Take Action: Sign the Petition to Close Corporate Tax Loopholes and Stand Up for the Middle Class



Comments

2 Responses to “NEA Takes On Corporate Tax Loopholes”
  1. Ryan Y says:

    NEA,

    In 2010, 142 million tax payers got back all their deducted income taxes or more. Basically 47% of Americans did not pay any federal income tax.

    So, let me suggest another way of raising 1.4 trillion.

    Let’s tax those 142 million folks at a small 7%.

    Let me go low on this estimation and say that the average income of these 142 million folks was $15,000. 142 million people X $15,000 = $2.1 Trillion. 7% of that total is $149 million x 10 years = 1.5 Trillion

    Stop the class warfare NEA. The rich pay a disproportionately amount of the federal revenue, yet use less of the services.

    The poor and lower middle class pay little to nothing, but use most of the services.

    These policies are the textbook definition of socialism.

    As for corporations they shouldn’t pay any taxes. Instead, they should flood their profits back into their company and invest in new buildings, new factories, and hire countless unemployed individuals.

    With this new income, unemployment checks are reduced, food stamps lessen, more income can be tax (building revenue) and we can begin to balance our budget.

    http://www.endangeredprinciples.blogspot.com

    Like or Dislike: Thumb up 1 Thumb down 2

  2. Mike says:

    Corporations taking advantage of tax loopholes is not the problem.

    It is corporations IN BED WITH GOVERNMENT WHICH ALLOW tax loopholes to be taken advantage of that’s the problem.

    Case in point, Obummer’s golfing buddy Jeffrey Imelt, the CEO of a little company called General Electric, paid ZERO TAXES in 2011.

    GOVERNMENT is the problem. In addition to education, they have ruined the mortgage industry, the student loan industry, the health care industry, the retirement industry, while poverty and drug abuse are at all time highs despite the “wars” against them.

    It is not corporations that are the problem. IT IS GOVERNMENT.

    Like or Dislike: Thumb up 0 Thumb down 1

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