Corporate Tax-Dodgers Imperil State Budgets
Among the huge and profitable corporations listed in the Fortune 500, many corporate giants managed to pay no state corporate income tax for at least one year between 2008 and 2010. A new report, “Corporate Tax Dodging in the Fifty States, 2008-2010,” from the Institute on Taxation and Economic Policy (ITEP) and Citizens for Tax Justice (CTJ), found that tax avoidance costs states some $42 billion in revenues over the course of the past three years, even as states struggle to meet their basic obligations to citizens.
The report is yet another showing how many massively profitable corporations pay little to no taxes. (ITEP’s and CTJ examined the top corporate tax-dodgers on the federal rolls, which we covered here.)
Looking at the tax records of 265 Fortune 500 corporations, the watchdog groups found 68 companies that managed to score, in the arena of state corporate income tax, at least one tax-free year, as well as another 20 whose tax bill averaged zero or less for the entire three-year period covered by the report. Read the rest of this entry »
‘Show Us the Tax Breaks’ Debuts in Washington
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We’ve all seen big corporations dangle the promise of jobs and economic nirvana over the heads of competing local and state governments, demanding they roll over and offer up big tax breaks, subsidies and other “incentives.” Whoever offers the best corporate welfare, wins the corporate “treat.”
But a new short film—”Show Us the Tax Breaks”—demontrates that all-too often, the jobs and economic benefits promised by corporations fall far short of promises. Sometimes, they just take the money and run, leaving communities in economic ruin.
“Show Us the Tax Breaks” premieres in Washington, D.C., Thursday, following a panel discussion with union leaders, economic and development experts and congressional members, who will explore how real economic recovery strategies must address the creation of good jobs and the role of corporate subsidies in our current economic climate.
Building Trades Backs Local Hire Drive for Tennessee VW Plant
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Volkswagen is building a $1 billion auto plant near Chattanooga, Tenn., after being lured there with a $565 million incentive package of taxpayer money. But, according to grassroots group “Volunteers for Local Hire,” many of the jobs building the facility are going to out-of-state and even out-of-country workers.
Last weekend, the group, along with members of unions from the AFL-CIO Building and Construction Trades Department (BCTD), held protests at 35 VW dealerships in 19 states, in support of the Tennessee group’s drive to win a “local hire” agreement with VW to ensure state contractors and workers have a fair share of the new work.
BCTD President Mark H. Ayers says protests are “not a union vs. non-union issue,” but that the broad support for the Tennessee workers shows people are “getting fed up with seeing their own tax dollars squandered on corporate welfare that doesn’t benefit them.”
