The Tax Holiday Lobby
While corporations pay tax on their global income, they pay no US taxes on their global profits held overseas. So, they shift profits overseas and park them there indefinitely to avoid taxes. Experts estimate there's been $1.9 trillion in unrepatriated foreign profits since 2005.
These global tax cheats have formed a coalition, Win America campaign, to lobby for a “tax holiday” and repatriation of their profits. Instead of paying the legal 35% corporate income tax rate, they propose to pay just 5.25%. See corporate supporters of the campaign here.
This Corporate Tax Holiday is a problem because:
- Our communities need the tax money. This law change would allow these profitable companies to dodge $80 billion in taxes.
- It encourages multinationals to behave badly and then lobby Congress every 5-6 years for a tax holiday.
- It rewards the worst corporate actors – those most aggressively avoiding taxes.