Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

6/6/2014 (3 months ago)

Catholic Online (www.catholic.org)

Corporations act as they do, and so does Congress.

Surprise, surprise, surprise!  The same day Cardinal Maradiaga condemned unethical business practices that do nothing to help those at the bottom of society, a report was released that shows a majority of Fortune 500 companies stash their money offshore to avoid U.S. taxes. The practice cheats American taxpayers out of $90 billion per year.

It's common and it cheats millions of their due.

It's common and it cheats millions of their due.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

6/6/2014 (3 months ago)

Published in Business & Economics

Keywords: tax haven, congress, corporations


LOS ANGELES, CA (Catholic Online) - Several Fortune 500 companies, using no more than an offshore post office box, are banking hundreds of billions of dollars in offshore tax havens. The estimated $90 billion shortfall in U.S. taxes is made up by taxpayers who pay higher rates or will pay higher rates later as interest on federal debt.

This practice costs every man, woman and child in America about $300 per year in extra taxes. However, it keeps corporate balance sheets looking better and makes millionaires richer.

We must each do our part to serve those in need.

Corporate bosses have a fiduciary responsibility to build shareholder value. Part of that pursuit is to protect income from tax burdens imposed by various governments. However, there is another responsibility which is being shirked, which is a responsibility to the people of the United States, often where these businesses make much of their money.

Such practices may boost the bottom line, which is great for investors, but it hits Americans in the pocketbook each tax cycle.

So who are the culprits?

Apple, GE, Microsoft, Pfizer and Merck are listed as the top savers using these tactics. The Netherlands, Singapore, Hong Kong, Luxembourg, the Caymans and Ireland are the places used for these havens.

The blame is not entirely on corporations, which are simply acting as corporations naturally do. Instead, it is up to Congress to close these tax loopholes by passing laws that require payments regardless of where the money goes.

Banks also bear some burden for operating these tax havens. The prime offender is Bank of America, which maintains some 264 tax havens.

It is believed that more tax havens exist and more businesses are using them, but they remain unknown to the federal government for various reasons.

Corporations in the United States are heavily taxes, paying a rate of about 35 percent, which is about 10 percent higher than is usually paid in the industrialized world. Corporations also lobby Congress heavily to keep loopholes open which are worth billions to them over several years.

Despite all this, it's that much less money for the government to spend on social programs and education, and it's less money in the hands of private citizens where it could do the most good of all.

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for September 2014
Mentally disabled:
That the mentally disabled may receive the love and help they need for a dignified life.
Service to the poor: That Christians, inspired by the Word of God, may serve the poor and suffering.



Comments


More Business & Economics

The Chinese are coming! E-commerce giant Alibaba cleans house with its initial public offering Watch

Image of Chinese e-commerce giant Alibaba has raised more than $21 billion with its IPO, with stocks priced at $68 per share, signaling a strong demand for the tech-giant.

By Catholic Online (NEWS CONSORTIUM)

The Chinese e-commerce giant Alibaba has made the largest U.S.-listed initial public offering (IPO) of all time, with stocks priced at $68 per share, signaling a strong demand. LOS ANGELES, CA (Catholic Online) - Only large investors, like hedge funds, can ... continue reading


Bottom of the Barrel - Thanks to business tax, the U.S. is Number 32 in the world Watch

Image of A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high

By Catholic Online (NEWS CONSORTIUM)

A new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. So says the Wall Street Journal, the nation's leading journal on business. The White House and Sen. Charles Schumer (D., N.Y.) will attempt ... continue reading


Unemployment rate for black Americans at 11.4 percent, more than double the rate for whites Watch

Image of There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap.

By Catholic Online - (NEWS CONSORTIUM)

There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap. Figures show that while unemployment nationwide is 6.1 percent, the unemployment rate for black Americans at 11.4 percent. LOS ANGELES, CA ... continue reading


A record 92,269,000 Americans jobless for month of August Watch

Image of So - there you have it: Things are STILL tough all over.

By Catholic Online - (NEWS CONSORTIUM)

It never went away, come rain or come shine form the past hot summer months . Many Americans remain idle and without work. According to the Bureau of Labor Statistics, a record 92,269,000 Americans 16 years of age and older didn't participate in the labor force ... continue reading


We owe HOW MUCH? New report reveals U.S. government owes $6 trillion to foreign entities Watch

Image of Foreign interests, including nations and businesses, own more than $6 trillion of U.S. government debt.

By Catholic Online (NEWS CONSORTIUM)

Foreign interests now own more than $6 trillion in U.S. government debt, a recent Treasury Department report on major foreign debt holders revealed. LOS ANGELES, CA (Catholic Online) - As of the end of June 2014, foreign-held debt totaled $6,013,200,000,000 in U.S. ... continue reading


Are you ready? Economic analysts predict bear market by end of 2014 Watch

Image of Economic analysts are predicting a significant drop in the market, which may be as high as 60%.

By Catholic Online (NEWS CONSORTIUM)

Two financial experts announced on August 27 that markets may face a fall of up to 60% by the end of 2014. LOS ANGELES, CA (Catholic Online) - David Tice, the president of Tice Capital and founder of the Prudent Bear Fund, reported that a jolt to international ... continue reading


Oh really Obama? President claims economic success while population dependent on food stamps hit all time high Watch

Image of The number of Americans on food stamps has not decreased since 2011, despite claims from President Obama that the U.S. economy has recovered under his policies.

By Catholic Online (NEWS CONSORTIUM)

Democrats are facing a tough midterm election, and with less than three months to go the party is scrambling to prop up the image of the U.S. economy in the minds of disgruntled voters. LOS ANGELES, CA (Catholic Online) - Yet one of the quickest shorthand ... continue reading


Here comes a boom! $7 trillion in untapped funds to flood global market Watch

Image of A report suggests that corporations and equity firms hold nearly $7 trillion in cash reserves that could bolster the world's economy.

By Catholic Online (NEWS CONSORTIUM)

A new boost to the global economic recovery may happen soon, as corporate giants and private equity firms prepare to tap into cash reserves of $7 trillion, stored since the current financial crisis began back in 2008. LOS ANGELES, CA (Catholic Online) - Investors ... continue reading


OBAMA PARTIES AS ROME BURNS: U.S. wages down by 23 percent - while president takes a vacation Watch

Image of The timing of Obama's swank vacation has even the president's supporters worried.

By Catholic Online (NEWS CONSORTIUM)

Lots of negative news to go around - Ebola seems to be spreading worldwide, Islamic State is increasing its stranglehold on Iraq, a much beloved comedian and screen actor is found dead at home, an apparent suicide - U.S. President Barack Obama is in Martha's ... continue reading


Religious orders NEED to understand economics Watch

Image of A letter from two high-ranking Catholic officials requests that religious orders gain a better understanding of finance and economics.

By Catholic Online (NEWS CONSORTIUM)

In a letter addressed to members of religious communities, Vatican officials requested that these groups should not be ignorant of economic realities connected to community life and a mission of serving the world in the name of the Church. LOS ANGELES, CA ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Isaiah 55:6-9
6 Seek out Yahweh while he is still to be found, call ... Read More

Psalm, Psalms 145:2-3, 8-9, 17-18
2 Day after day I shall bless you, I shall praise ... Read More

Gospel, Matthew 20:1-16
1 'Now the kingdom of Heaven is like a landowner ... Read More

Reading 2, Philippians 1:20-24, 27
20 all in accordance with my most confident hope and ... Read More

Saint of the Day

Saint of the Day for September 21st, 2014 Image

St. Matthew
September 21: St. Matthew, one of the twelve Apostles, is the author of the ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter