US Corporations Avoid Tax at the Expense of the US Taxpayer

The US Securities & Exchange Commission has reported that Apple, Cisco Systems, Google, and Microsoft hold billions in US Treasury securities and in US government agency debt in accounts overseas. Doing so enables these four companies to avoid paying tax at the 35% top US corporate tax rate. It is all quite legal, apparently.

It will not be lost on those who understand these things that the income from these securities and debts is paid by the US government who get their money from the US taxpayers. The US government pays the interest but does not receive any tax on it, while millions of Americans who do not hold their savings in offshore accounts (and some who do) have to pay tax on their income to the US government this taxed income is used to pat interest on debt that the USA has borrowed from wealthy companies who do not themselves pay tax.

It has been calculated that if these four technology companies did pay tax on these income producing securities debts and deposits it would yield $89 billion a year, but I am suspicious of that figure which seems overly high.

Altogether $1.95 trillion is held by 317 companies US outside the USA, all so held in order to pay little or no tax.

One Response

  1. An explanation to be seen here.

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