It’s been an ongoing issue for many years now, even decades — high technology and other blue-chip companies have been hoarding profits outside the United States and keeping the money there in order to avoid paying high U.S. corporate taxes.
For some companies such as Apple, the amounts are in the hundreds of billions of dollars, denying Uncle Sam tax revenues that are larger than the GDP of some third-world nations. The laws surrounding these issues are extensive and complex. Often, gray areas and loopholes have been created that multinational conglomerates have exploited to the maximum, using armies of tax lawyers.
Recently, the European Union has begun to take action regarding this issue and tax revenues due to it; the time has come for the U.S. government to take some of the same measures.
Even if current U.S. regulations make the companies’ financial games legal, it’s time to enact legislation that punishes the corporations for taking advantage of the tax code so egregiously. Examples must be made and bargains must be driven in order to reverse the economic tide.
Politicians such as President-elect Donald Trump need the backbone to downsize and minimize these shenanigans. When General Electric pays less in taxes than you do, something is clearly wrong with the rules.
Steve Mnuchin, Trump’s pick for Treasury Secretary, and Wilbur Ross, Trump’s pick for Commerce Secretary, have promised vast reforms in this department via incentives and changes to the tax code. Watch the clip below to see the enormity of the promises they make to the American people—you’ll be excited at just how bright our future looks!
