Warren: Large Corporations Have Too Many Ways to Avoid Paying Taxes
While the majority of American politicians continue to discuss the Paris terror attacks and Syrian refugees, Elizabeth Warren has returned to normalcy and is focusing on breaking up the nearly infinite power that large corporations enjoy.
She slammed large corporations for paying less income tax than an average citizen due to loopholes that they manipulate in their favor.
“Only one problem with the over-taxation story: It’s not true,” Warren said at the National Press Club on Wednesday. “There is a problem with the corporate tax code, but that isn’t it.”
“Our tax code should protect jobs and investments at home, period,” she said.
“The lobbyists have a pretty strong elevator pitch” that the U.S. needs lower corporate tax rates because the top rate of 35 percent rate is leading companies to flee the country, Warren said, noting that GOP presidential candidates such as Donald Trump, Ben Carson and Sen. Marco Rubio (R-Fla.) have made such comments.
The Hill reports:
But various tax preferences let companies have effective tax rates that are much lower, and some of the largest corporations have a rate of zero, Warren said, highlighting the ability for companies to attribute corporate income to subsidiaries in offshore tax havens.
Warren criticized three corporate tax reform ideas getting attention in Congress. The first, known as “deemed repatriation,” would let companies bring back offshore money but have it taxed at a rate well below the corporate tax rate.
Warren called it a “giant wet kiss for the tax dodgers who have already parked $2.1 trillion overseas.”
The second — to tax overseas income at a rate lower than the one for U.S. income — is “even worse,” Warren said.
The third reform Warren criticized is the idea of an “innovation box,” which Warren said would allow companies to pay lower taxes on some earnings but would not actually stimulate innovation.
“I think of it as the gift for lazy tax dodgers,” she said.
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