More U.S. Profits Parked Abroad, Saving on Taxes
A Wall Street Journal analysis of 60 big U.S. companies found that,
together, they parked a total of $166 billion offshore last year. That shielded more than 40% of their annual profits from
U.S. taxes, though it left the money off-limits for paying dividends, buying back shares or making investments in the U.S.
The 60 companies were chosen for the analysis because each of them had held at least $5 billion offshore in 2011. The practice is a result of U.S. tax rules that create incentives for companies
to maximize the earnings, and holdings, of foreign subsidiaries. The law generally allows companies to not record or pay taxes
on profits earned by overseas subsidiaries if the money isn't brought back to the U.S.
Who will be paying Hillary? - As the former secretary begins a speaking career, we'll learn a lot from her corporate client
...“speaking fees” is a sanitized phrase that evokes images of earnest
college lectures and graduation orations. But for the most part, the term really refers to a corporate payoff, either for
a job well done in office, or for a former politician to add his name to the corporate brand... The dirty secret of American politics is that, for most politicians,
getting elected is just not that important. What matters is post-election employment. It’s all about staying in the
elite political class, which means being respected in a dense network of corporate-funded think tanks, high-powered law firms,
banks, defense contractors, prestigious universities, and corporations. If you run a campaign based on populist themes, that’s
a threat to your post-election employment prospects.
Facebook Gets a Multibillion-Dollar Tax Break
first annual earnings report contains an accounting gem: a multibillion-dollar tax deduction for the cost of executive stock
options and share awards. Even though Facebook (FB) reported $1.1 billion in pre-tax profits from U.S. operations in 2012,
it will probablypay zero federal and state taxes—and even receive a federal tax refund of about $429
million—according to a Feb. 14 statement from Citizens for Tax Justice. The tax-research and -lobbying organization says companies such as Facebook should treat stock
options the same in their reports to shareholders as they do in their tax filings. Citizens for Tax Justice calls the
tax footnotes in Facebook’s Jan. 30 financial statement “an amazing admission,” but there’s nothing
illegal about the breaks the company is claiming.
Four charts that show US companies hiding profits abroad (legally)