That’s the word President Obama used to describe corporations that, rather than take advantage of all the tax loopholes Congress has provided, choose to acquire foreign firms, or even move out of the country, to lower their taxes.
In 1952, the corporate share of federal tax revenues was 33%. The projection for 2014: 10.5%.
The corporate complaint: the U.S. corporate tax rate (35%) is too high. Yet according to “The Artful Dodgers,” an article on page 26 of the September 22, 2014 issue of TIME magazine by Rana Foroohar, the average tax rate for the Fortune 500 is 19.4% “…and a third pay less than 10%.”
Companies that are keeping their money outside the U.S. are “…more or less renouncing their corporate citizenship to avoid taxes.” They are forgetting the tax breaks and the benefits they reaped from “…U.S. talent and markets…” making them big and profitable in the first place.
In “The Entrepreneurial State,” Mariana Mazzucato points out that many corporate innovations “…came out of state-funded research.” But then the profits are stashed in Ireland, the Cayman Islands, or some other tax haven, resulting “…little return to the economy or the state.”
Should not American prosperity be shared by raising the level of the standard of living for all Americans and not stashed in some other country to further enrich the corporations and their cadre of managers?