The concept of big American companies being able to move operations offshore to avoid taxes really bugs me. They don't even have to leave the country to do it, just head down to Puerto Rico, which, despite the fact that it has its own Olympic teams, is part of the United States. As long as the profits aren't repatriated, the companies don't pay taxes on them. They can borrow against them, and use the borrowed money for projects anywhere in the world, without facing any tax penalties. I still get the logic of this, but it evidently works really well.
This is a big savings for the companies, and big business for tax lawyers. Of course, if you did it (or tried) and were living off a credit card fro and offshore bank, the IRS would swoop down on you. Why's the law different for big companies and people? Regardless, it's wrong either way. Right now the citizenry pays 80% of the taxes, with the corps paying 20%. Both reap the benefits of our infrastructure, but the companies can buy Congressmen, Presidents, and tax lawyers to fix it for them. We can't.
I'm not saying we should rape and pillage corporate coffers for the Treasury, but the corporations that live off us, should pay their share, too. More on how I think taxation should work another time. Its radical, it's different, and at least better than what we've got now.
Check this out for info on how we get taken by corporations and their tax lawyer/accountant friends: http://www.nytimes.com/2002/04/16/business/16TAX.html
Posted by Chris at April 22, 2002 03:14 PM