The Flight of Corporations

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           Here’s the chart MoveOn put together of Bernie Sanders list of the top ten corporate tax dodgers.  Actually, their tax avoidance may be entirely within the “law” – they made the law:

           We discuss General Electric, pointing out that it has acquired four companies since December, the last one a French manufaturing company for the amount of its announced tax credit. 

           There is no way ordinary citizens can keep track of all the merger and acquisition activity of these global firms, much less guess at the details of how they dertmine whether they owe taxes to the United States government, and if so how much.   We do know, however, that the percent of federal tax revenues coming from corporations has fallen off significantly in recent years, down from over 30% at one point to less than 6% today. 

          We know that, to the extent they can, they are profiting from sales to American citizens.  Those profits are direct transfers of wealth, as they are not returning any portion to the economy through taxation.  Thus, their tax avoidance drives down the economy and deepens the recession.

JMH – 4/27/11   

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