American multinational corporations are apparently dodging nearly $700 billion in U.S. taxes they owe on profits stockpiled offshore, according to a new "corporate tax chartbook" from Americans for Tax Fairness (ATF) and the Economic Policy Institute (EPI).
Last year, Fortune 500 companies had $2.4 trillion in untaxed offshore profits, on which they owe up to $695 billion in U.S. taxes, the analysis found.
"Corporations have not paid any U.S. taxes on these profits because our tax system lets them defer paying taxes until that income is brought back to the U.S. parent corporation (i.e., repatriated)," the report states.
This deferral process costs the U.S. Treasury roughly $126 billion annually or $1.3 trillion over a decade.
Chicago Ald. Scott Waguespack (32nd) says he thinks he has solved the city's budget for next year.
"We'll just add an additional tax on every item that the Cubs sell this season," Waguespack joked Thursday during a City Club of Chicago panel discussion on the city's 2017 budget.
"I've never seen so many people wearing Cubs gear, not only in Chicago but just nationwide," the alderman said. "It's a good thing to see a team doing so well, because it does add to the bottom line. It adds to Chicago's stature at a time when things are pretty difficult, when we see so much increase in crime and violence throughout our city, that we can have one thing to look at and say this is a good thing."
Twenty leading U.S. banks collectively paid their top five executives $2 billion in tax-deductible bonuses between 2012 and 2015, according to a recent report examining Wall Street CEO pay.
That $2 billion figure works out to be a tax break valued at $725 million, or $1.7 million per executive per year, the Institute for Policy Studies (IPS), a progressive think tank, found.
"Taxpayers should not have to subsidize excessive CEO bonuses at any corporation," report co-author and IPS Global Economy Project Director Sarah Anderson said in a statement. "But such subsidies are particularly troubling when they prop up a pay system that encourages the reckless behavior which caused one devastating national crisis -- and could cause more in the future."
A group of Chicago aldermen proposed a package of ordinances Wednesday to generate revenue for the city's cash-strapped public schools.
The Chicago Public Schools (CPS) district has a $300 million budget gap, and schools are reportedly facing a 7 percent funding cut in the upcoming academic year.
"We've received some money from the state, but it's just not enough," Ald. Roderick Sawyer (6th) said at a press conference before the council meeting with fellow aldermen, the Chicago Teachers Union and other education advocates.
"We need to find more progressive and more viable solutions to increase revenue so that all of our schools can be adequately financed, so that we can give quality teachers an opportunity to teach in our schools," he continued. "When I had a conversation with a principal yesterday, she was perplexed that she could not hire a 20-plus year veteran school teacher because she could not afford it. That's not right."