Second, businesses should not be rewarded for shifting jobs and investment overseas or disguising U.S. profits as foreign profits to reduce their taxes. In our current two-tier corporate tax system, some profitable U.S. corporations pay taxes while others pay little or none – using aggressive accounting manipulation to disguise U.S. profits as foreign profits to avoid taxes. Our government should reject demands by U.S. multinationals for a tax holiday to “repatriate” the funds they shifted offshore to avoid paying taxes. This would cost the U.S. Treasury $80 billion according to the congressional Joint Committee on Taxation and increase pressure to cut government spending on vital services. We also oppose changing to a “territorial” tax system, which would accelerate the use of accounting manipulation to shift domestic profits to foreign tax havens, permanently rewarding those who shirk their taxpaying responsibilities.
Third, by ending unproductive tax loopholes and subsidies benefiting large corporations, we can level the playing field and raise revenues needed to restore economic vitality. Corporate taxes, like individual income taxes, support the public services and infrastructure upon which all businesses depend. These include a publicly educated workforce, transportation systems, safe drinking water and sanitation, the judicial system, taxpayer-funded research (which has played a crucial role in health advances and the creation of the Internet, for example), federal emergency response and so on. But, the public services and infrastructure underpinning a healthy economy are now being cut dramatically because of inadequate revenues.
A transparent corporate tax system that assures all companies pay for the services upon which our businesses, our customers, our workforce and our communities depend, would help restore the economic vitality and domestic job creation we all seek.
CEO, American Sustainable Business Council
Business for Shared Prosperity
Main Street Alliance