There is widespread agreement, across the political spectrum, that the gaming of the tax code by multinational corporations is a problem. When profits and jobs are shipped offshore, we not only harm the U.S. economy, we fuel a tax haven industry that drains wealth around the world. We seek to fix the problem of large, well-connected interests gaming the tax system.
The FACT Coalition joined 53 additional organizations to send a letter to Congress supporting the No Tax Breaks for Outsourcing Act – S. 2459, which would eliminate the deep discount that multinational companies get for shifting profits offshore and outsourcing jobs.
Last week, the House Ways and Means Committee held a hearing on the Tax Cuts and Jobs Act (TCJA). Proponents of the law used the occasion to tout its alleged economic benefits and argued that its temporary provisions should be made permanent. The title of the hearing was “Growing Our Economy and Creating Jobs,” but there is little evidence that the law does either of these things.
Just in time for tax day, the nonpartisan Congressional Budget Office is out with a new analysis of the Tax Cuts and Jobs Act. It is one of the many reminders that, as we file this year, we are already thinking about next year, thanks to the recent rewrite of the nation’s tax laws.
The CBO weighed in with estimates that are worth a serious review. They looked at, among other provisions, the international corporate tax changes and attempted to answer these questions: Will the new rules stop corporations from using accounting gimmicks to shift profits offshore? Will the law stop the gaming?
The HBO television show Last Week Tonight with John Oliver has become known for its longer segments that examine important issues facing the country. In its latest segment on Sunday, the show took a deep dive into corporate taxes and how many companies manage to avoid paying their fair share. Between its hilarious interludes, the segment painted a striking portrait of problems in our corporate tax code and how the Tax Cuts and Jobs Act (TCJA) failed to address them. Here are some key points.
Supporters of the new tax law said the corporate cuts would lead to a $4,000 increase in the annual paychecks of ordinary Americans. Others, including those in the administration, claimed $9,000.
The bill’s now law. Raise your hand if you make $50,000 – roughly the average wage – and expect a $9,000 raise this year?
I suspect few hands went up.
The Financial Accountability and Corporate Transparency Coalition (FACT Coalition) sent a letter to House and Senate Committees on Appropriation calling for an additional $495 Million in funding for the IRS to Implement TCJA. The full letter can be read below or downloaded here.
