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.
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.”
CEOs at America’s largest firms received an average of $15.5 million in compensation last year, meaning they earned 276 times more than the typical worker in 2015, new research shows.
The $15.5 million in average CEO compensation was down about 5 percent from 2014, when the figure was $16.3 million, and up 46.5 percent since the economic recovery began in 2009, according to the Economic Policy Institute (EPI).
“Most (83 percent) of the decline in CEO pay from 2014 to 2015 can be explained by the drop in the value of realized stock options in that period,” EPI’s report reads. “Therefore the decline in compensation does not reflect any structural change in how CEO compensation is set or changes in corporate governance. CEO compensation will likely resume its upward trajectory when the stock market resumes upward movement.”
U.S. workers have seen their share of corporate income for compensation drop from 82 percent to 75 percent since 2000, shows a recent analysis by the Economic Policy Institute (EPI).
A 7-point decrease “might not seem like a lot, but if labor’s share had not fallen this much, employees in the corporate sector would have $535 billion more in their paychecks today,” EPI’s research and policy director Josh Bivens said in a paper on the findings.
That money would work out to be a $3,770 raise for each U.S. worker if all working Americans, not just those employed in the corporate sector, got a slice of the pie.
About 50 members of IIRON, National People’s Action and other grassroots groups briefly demonstrated inside the Walmart, at 7050 S. Cicero Ave. They held signs that read, “Poverty pay? No way! We need the RBA,” and chanted call-and-response style, “What do we want? Fair wages! When do we want them? Now!”
Protesters carried a large poster of a fake $33 million invoice, symbolizing the cost of Walmart’s “poverty wages” to Cook County taxpayers. Organizers claim local taxpayers are left with a $33 million tab each year to cover public benefits for employees at Walmart’s 25 Cook County stores. The group’s calculation is based on a May 2013 congressional report prepared by the Democratic staff of the U.S. House Committee on Education and the Workforce, which found that one 300-person Walmart Supercenter store in Wisconsin likely costs taxpayers more than $900,000 annually in government assistance for its workers.