$1,400,000,000,000: Oxfam Exposes the Great Offshore Tax Scam of US Companies

[JEB]

Last edited Thu Apr 14, 2016, 11:06 PM - Edit history (3)

"We can't go on with a situation where the rich and powerful are not paying their fair share of tax, leaving the rest of us to foot the bill."
by
Andrea Germanos, staff writer

http://www.commondreams.org/news/2016/04/14/1400000000-oxfam-exposes-great-offshore-tax-scam-us-companies

Using an "opaque and secretive network" of subsidiaries in tax havens, top American corporations have stashed $1.4 trillion offshore, a new report from Oxfam shows.

With "a range of tricks, tools, and loopholes," for tax avoidance, the 50 largest U.S. companies, including well-known names like Goldman Sachs, Verizon Communications, Apple, Coca-Cola, IBM, and Chevron, raked in $4 trillion in profits globally between 2008 and 2014, are contributing to inequality, the anti-poverty group said.

The report, Broken at the Top (pdf), states that such tax dodging is one of the "profit-making strategies of many multinational corporations."

As noted in the report,

From 2008 – 2014 the 50 largest U.S. companies collectively received $27 in federal loans, loan guarantees and bailouts for every $1 they paid in federal taxes.
From 2008 – 2014 these 50 companies spent approximately $2.6 billion on lobbying while receiving nearly $11.2 trillion in federal loans, loan guarantees and bailouts.

<snip

___________________________________________________________________________________________________________

Oxfam spells it out, plain and simple. Give it a thoughtful read.

[tk2kewl]

1. k&r

[Divernan]

44. Have Oxfam investigate the Clinton Family Foundation next

and all it's triangulated, convoluted dealings/money launderings with foreign governments, corporations and the U. S. State Department. It's like that carnie/grifter game with the 3 walnut shells and the pea.

[no_hypocrisy]

2. Putting it starkly:

We are on the cusp of losing Medicaid, Medicare, and Social Security because 1% of the citizens and their businesses are hiding assets and not paying their fair share. They are bankrupting the country.

[JEB]

4. They want it all. Let us peons eat cake.

[WHEN CRABS ROAR]

36. They really don't think that we will rise up

do they

[Ferd Berfel]

22. And Politicians on BOTH sides that are funded by them

will only help them to finish the job.

[AxionExcel]

3. Goldman Sachs. Hmmm? Now where have I heard that name before?

[LonePirate]

5. Your headline and the subject differ by three zeroes (1.4B vs. 1.4T).

[JEB]

6. Thanks for heads up. I copy and pasted from Common Dreams website.

[JEB]

9. Actually I think the number is correct.

1.4 trillion is 1 trillion four hundred billion. Lots of zeros to keep track of either way.

[JEB]

37. Finally got my head straight and added the three missing zeros.

So much money.

[Delmette]

7. Tell me if i'm wrong.

A U. S. Corporation moves to a foreign country to avoid U.S. taxes. They are not required to pay off current loans to the U.S. government and they are qualified for other U.S. government loans and bailouts. Also, as a now foreign corporation they are allowed to lobby the U.S. Congress.

Tell me if I'm wrong, please.

[tclambert]

8. You are wrong. All of that would be evil. And we don't stand for such evil here in America.

Sigh.

[Delmette]

10. Ok, thank you.

[tclambert]

12. I was talking to an acquaintance who teaches History in Junior High

and I told him I could remember when in American History and in Civics class they would tell us proudly that in America "no one is above the law."

He said, "Yeah, we don't teach that anymore. It's not in any of the textbooks I've seen. Not since Ford pardoned Nixon."

[Delmette]

15. I took some college classes in '89.

One was an Economics class and there was a question on the ethics of selling your property or business to a foreign entity if they offered more than the asking price.
At 36 years old I was the "old lady". Most of the kids thought it would be alright. I was the only one who thought it would be wrong to sell out the community like that.

[bigbrother05]

18. The US subsidiary can lobby, the foreign parent can't

Nissan USA can lobby, not Nissan Japan.

It's the same loophole Halliburton used to do business with Iraq/Iran/etc. despite sanctions.

The parent doesn't control the child?

[Plucketeer]

11. Lemmee see now....

Which primary contender would like to put a stop to these shenanigans???

[malaise]

13. I hope both candidates see this before tonight's debate

This will not help the beneficiary of that Verizon check valued at $225,000 for a speech.

[Ferd Berfel]

23. given all of her flips and triangulations

I don't understand why anyone would believe her if she said she was, all of a sudden, FOR breaking this up.

especially in light of her double secret hidden speeches to them

[Enthusiast]

25. No credibility.

[Ferd Berfel]

27. yea, and that too

[sus453]

31. Interesting contrast between the two candidates . . .

One is walking on the picket line with strikers who are trying to keep from losing their pay and benefits, and the other is taking a quarter of a million dollars for a pep talk to that company's CEO.

[TryLogic]

14. You don't have enough zeros. You are showing billions, not trillions.

[JEB]

38. Thanks, think I finally got it right.

[Phlem]

16. Don't worry. Hillary will fix it so no one gets caught anymore.

[libdem4life]

30. Don't you remember. .. she told them to cut it out.

And they just pay her whatever they want to. Sheesh...picky picky

[glinda]

17. KICK

[jtuck004]

19. "With "a range of tricks, tools, and loopholes," In other words "The Policies of the People You

Voted For"...

[Octafish]

20. ''Did the statute of limitations expire, again? Drat!'' -- Erik H. of New Rochelle

Thank you for a great article, JEB. You might want to know the technology exists to tax those offshore the offspring of dogs who own those tax dodging corporate entities.

Tax Offshore Wealth Sitting In First World Banks

James S. Henry
07.01.10, 09:00 AM EDT
Forbes Magazine dated July 19, 2010

Let's tax offshore private wealth.

How can we get the world's wealthiest scoundrels--arms dealers, dictators, drug barons, tax evaders--to help us pay for the soaring costs of deficits, disaster relief, climate change and development? Simple: Levy a modest withholding tax on untaxed private offshore loot.

Many aboveground economies around the world are struggling, but the economic underground is booming. By my estimate, there is $15 trillion to $20 trillion in private wealth sitting offshore in bank accounts, brokerage accounts and hedge fund portfolios, completely untaxed.

SNIP...

This wealth is concentrated. Nearly half of it is owned by 91,000 people--0.001% of the world's population. Ninety-five percent is owned by the planet's wealthiest 10 million people.

SNIP...

Is it feasible? Yes. The majority of offshore wealth is managed by 50 banks. As of September 2009 these banks accounted for $10.8 trillion of offshore assets--72% of the industry's total. The busiest 10 of them manage 40%.

CONTINUED....

http://www.forbes.com/forbes/2010/0719/opinions-taxation-tax-havens-banking-on-my-mind.html

Which might be a more fair way of doing fiscal policy, IMHO.

[ms liberty]

21. I would K&R this reply if I could!

You always have great stuff, Octafish - thanks!

[malaise]

24. The question is which of the scumbags menioned are fronts for

governments across the globe?

[JEB]

29. Thanks for the post and link. Very informative

[ArcticFox]

26. that should be 1.4 trillion

You've got 1.4 billion. Add three zeroes.

[JEB]

39. Fixed it. Thanks.

[newthinking]

28. This is just from one method/facet, of the hidden economy. Many times this has been siphoned

and hidden from view. We are still only scratching the surface.

[Myrina]

32. K&R

[Dont call me Shirley]

33. Thieves!

[GeorgeGist]

34. 1,400,000,000,000

[ozone_man]

35. Correct!

Be careful with those zeroes!

[JEB]

40. Got it right now. Holy cow, that is a lot of money.

[burrowowl]

41. K&R!!!!

[Major Hogwash]

42. Then they have the gall to call themselves American companies!!!!

I remember a time in Amerika when corporations were afraid to take their factories offshore because of the perception of it being foreign-made junk.
But now, they not only send our jobs overseas, they stash their cash in banks located offshore, as well, too.

Yet, Congress looks the other way.

The status quo . . it will kill America's form of democracy.
For without taxes, no public programs can be funded properly.
No road building programs, no bridge repair programs, no food stamp programs, no Social Security programs, no Medicare programs, no Medicaid programs, no federal programs of any kind can be funded properly simply because of these loopholes and accounting tricks!

And the Democrats in Congress went along with it!!

[pansypoo53219]

43. can we bring back guillotines now?

[They_Live]

45. Until we eliminate the loopholes

and actually make this crap illegal, it will continue, and those it is designed for(and by) will continue to take advantage of the rewards for their business.

[rhett o rick]

46. Anyone else notice the lack of Clinton supporters when we talk about financial crimes?

Do they favor the crimes of the Rich And Powerful, or do they want to pretend they aren't really happening?

I noticed that threads that discuss the protests don't ever get Clinton supporter comments. If they ever do enter a thread that discusses the excesses of the Rich and Powerful, it's to defend them. They are clearly on the wrong side of this class war.

[Fantastic Anarchist]

47. The productive force (Labor) again pays the bill.

We produce, they take and offshore our surplus value. What's worse, is that money is not being reinvested into our economy, and towards infrastructure. We are literally funding a one trillion dollar trust. Literally socializing the cost and privatizing the profit, none of which we'll ever see again.

Global capitalism, ladies and gentlemen, brought to you by neo-liberals, who just expanded upon Trotsky's global socialism, and over-powered Labor to the punch.

When will we rise up? We have the numbers.