| Romney Doesn't Fault Companies for Shipping Jobs Overseas |
| Posted by Becky (rebecca) on Aug 16 2011 at 12:07 PM |
They Really Said It
At a recent community forum in Derry, New Hampshire a WFW organizer asked the GOP frontrunner if he supports closing corporate loopholes to help close the deficit, his response: “What are examples of corporate loopholes? US companies moving to Switzerland because the tax rate is better, we have a 35% tax rate in the US.”
What It Really Means
In fact, the whole reason loopholes are termed “loopholes” is that large multi-national corporations find ways to avoid paying their fair share of taxes. Take Google for instance, which has used deceitful, yet legal, games to cut its tax rate to 2.4% and its taxes by $3.1 billion over three years. Practices such as those that Google uses are widely employed by global companies, in turn dramatically reducing their tax rate and cheating the US Treasury out of billions! Find out more here.
What Really Should Be Done
According to economist Dean Baker "Having a high corporate tax rate and then filling the tax code with loopholes is a way to support the loophole industry, it is not good economic policy. It makes much more sense to lower the rate and eliminate the loopholes, so that the marginal tax rate is also the rate that businesses actually pay."