Busted: Bankers and The Global Economy

January 13, 2009

April 1, 2008

Clinton, Offshore Banking & Corporate Inversion

capital.jpgThe debate about cutting U.S. taxes for corporations and the wealthy is largely a pretense. The issue is not whether multinational corporations, bankers and the very rich benefit from tax cuts. The majority of multinational firms walk away from all taxes. A General Accounting Office report revealed that between 1996 and 2000, 61 percent of all U.S. companies paid no federal taxes.

Saving money and avoiding taxation pitfalls is a major concern of corporations, especially in the United States where taxes are professed to be higher than in most other nations. A corporation owned and organized in the United States pays federal taxes on corporate global income. A foreign corporation pays federal taxes and state taxes only on U.S. income generated. As a result, a technique known as corporate inversion is commonly employed to lower U.S. tax impact. Without a corporate inversion (more…)

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