Bernie Sanders Drops A Bomb On Greedy Corporations With Bill To Make Them Pay Their Fair Share

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Sen. Bernie Sanders (I-VT) drops a bomb on corporations who are dodging taxes by hiding money overseas by introducing new legislation that will force tax dodgers to pay their fair share.

Here is part of what The Corporate Tax Dodging Prevention Act of 2015 would do:


1. Ending the rule allowing American corporations to defer paying federal income taxes on profits of their offshore subsidiaries. (Section 2 of the bill.)

Current law allows American corporations to defer paying U.S. income taxes on profits of their offshore subsidiaries until those profits are “repatriated” (officially brought to the U.S.) which may not happen for years, if ever. As a result, American corporations would rather report foreign profits than domestic profits to the I.R.S. Deferral therefore creates an incentive to either move operations and jobs to a lower-tax country, or to use accounting gimmicks to make U.S. profits appear to be earned in a lower-tax country.

The Congressional Research Service has indicated that the cost of this tax avoidance to the U.S. Treasury approaches or exceeds $100 billion annually. The Corporate Tax Dodging Prevention Act would end this tax avoidance by ending the rule allowing deferral of U.S. income taxes on offshore profits.

Under this legislation, American corporations would still be allowed a credit that reduces their federal income tax liability by an amount equal to income taxes paid to foreign governments on these profits. This foreign tax credit exists under current law and already prevents double-taxation of profits.

2. Closing loopholes allowing American corporations to artificially inflate or accelerate their foreign tax credits. (Section 4 of the bill.)

When U.S. corporations earn profits overseas, taxes paid to the foreign country are credited against U.S. tax liabilities, in order to avoid double-taxation. Under current rules and tax planning strategies, corporations are allowed to claim foreign tax credits for taxes paid on foreign income that is not subject to current U.S. tax (meaning foreign tax credits in excess of what is needed to avoid double-taxation). As a result, companies are able to use such credits to pay less tax on their U.S. taxable income than they would if it was all from U.S. sources – providing them with a competitive advantage over companies that invest in the United States. Under the Corporate Tax Dodging Prevention Act, foreign tax credits generated by profits earned in one country could not be used against U.S. income taxes on profits earned in another country.

3. Preventing American corporations from claiming to be foreign by using a tax haven post office box as their address. (Section 5 of the bill.)

At a news conference to unveil the legislation, Sen. Sanders said, “”At a time when we have a $18.2 trillion national debt and an unsustainable federal deficit; at a time when many of the largest corporations in America are paying no federal income taxes; and at a time when corporate profits are at an all-time high, it is past time for corporate America to pay their fair share in taxes so that we can create the millions of jobs this country needs.”

The House companion measure to The Corporate Tax Dodging Prevention Act of 2015 is being introduced by Rep. Jan Schakowsky (D-IL), who said, “Over the past 30-40 years, virtually every time Americans have been asked to make ‘tough choices,’ it has resulted in disproportionate harm to low- and middle-income individuals and families. Cuts to programs that help Americans get ahead and stay ahead have been significant, while tax breaks have been handed out like candy to captains of industry and the behemoth corporations they run. Most perversely, these tax breaks have incentivized moving revenue and jobs overseas. It’s time that we end that skewed system, and the Stop Corporate Tax Dodging Act would help us do that.”

There is a mounting wave of outrage building against corporations who are dodging their taxes by hiding profits overseas. There is a consensus on the left and right that this money needs to be brought back home. The problem is that many Republicans don’t believe that corporations should have to pay their fair share. In fact, the Republican budgets passed by both the House and Senate include big tax breaks for the wealthy and corporations.

As millions of hard working Americans and small businesses file their tax returns, it is important to remember all of the big and extremely profitable corporations who are forcing you to pay more while they pay nothing, or even get a rebate.

The issue is one of fairness. Those who make their money off of American consumers should be paying their share of taxes. The era of the free ride must come to an end for greedy corporate deadbeats, and Bernie Sanders is proposing the legislation that will accomplish this goal.

28 Replies to “Bernie Sanders Drops A Bomb On Greedy Corporations With Bill To Make Them Pay Their Fair Share”

  1. Thank you Bernie! I am so torn….I really want him to run for president, but we really need him…and more like him in the congress. If he gives up his seat I am afraid it will be snatched up by one of evils/lesser of two evils. :-(

  2. It takes a very stupid person to believe you can run a state and/or country without tax revenue & still expect the same level of services. We once had to bail out Wall Street, next we’re going to have to bail out the states that have been made bankrupt due to gerrymandered GOP majorities in their local governments; like Kansas, Louisiana & Wisconsin just to name a few.

  3. If I thought it had a snowball’s chance of passing through the Bought & Paid For Republican Congress:

    “And there was much weeping and wailing and gnashing of teeth!”

  4. Greey corporations do not pay tax. They just pass it on to you me. We need a complete tax overhaul, like a tax on money spent instead of income. Read “The Fair Tax”

  5. I don’t really know much about Bernie Sanders, but I sure like his thinking on this subject matter. Its over-due!! He isn’t in my state, but if his ideas are on a ballet we all can vote on, I would certainly support him!! I would take it a step further and write my own Senators & Representatives and ask for them to support him too!!

  6. Keep trying Bernie, but we all know they won.t even let this bill be herd as long as citizens united exist. To many of them are paid for jerks with no moral turpitude. By the way when you putting your name up. Hillary as you know is a woman and would get the same bigoted blocking of everything she tried just like they do with the black man. So until you put your name in we have nobody to vote for

  7. No doubt we need a ton more just like Bernie. I expect to hear the right wing nay sayers reply telling me how Bernie himself is a millionaire, and to them I say,” So What!”. Look at the number of GOP reps in both houses in comparison to Democrats or Independents and see who has the wealthiest members. GOP has been sucking on the corporate teat for decades and being well paid for it as well.

  8. dar, You do realize, Bernie is a Senator, not a Congressman, and as such isn’t a member of the house of Congress, but the Senate, right? Just saying, I agree with the spirit of your post just disagree with where Bernie resides in DC. God only knows there’s already enough politicians there who don’t know where they are already, or where they are from and who they supposedly support without getting them any more confused.

  9. I have no interest in corps and wealthy individuals paying their “fair share” of taxes.

    I want them to pay a massively unfair portion of taxes as the US Govt operates on their behalf, and they should pay the majority of the costs of running it.

  10. Tatiana, Not just stupid people, but super greedy ones, and from both sides of the aisle as well. The GOP has been pandering to the corporate types for decades, back to Reagan and before, in comparison, it’s recently that reps from Independent and Democratic parties have gotten into the fray in terms of standing there in front of potential campaign contributors with their hands out who then forget the people they were elected to represent shortly after being elected. Money corrupts, and as the old saying goes so does the power it buys,”Absolute power corrupts, absolutely”.

  11. You do realize that the term “Congress” refers to a branch of our government that includes BOTH the Senate and the House of Representatives? Thus our beloved Bernie is both a Senator and a Member of Congress.

  12. So you, as a so-called aware constituent of somebody will choose to stay home and not vote because Bernie might not choose to run? What if he doesn’t? So, you would prefer to have a Republican president because those who don’t vote because Bernie didn’t run are responsible if the outcome is a republican president. They will ruin America, its citizens, and ultimately the whole world. You should re-think your position. If you think Hillary is evil, at least she is much less evil than any Republican who is or might run.

  13. I have no problem with closing active corporations that are offshoring and using loopholes.
    I do have a problem with going after inheritance and estates.
    I am 60 and retired. I worked my life to build my fathers estate.
    We paid 30%+ taxes on it when we earned it, just like everybody else.
    Then a 40% inheritance tax. Then lawyers, accountants, probate costs, 6% depreciation, then divide with siblings that did little to nothing to earn their share. Not exactly what I would have hoped for.
    The poor are screaming for a bigger inheritance tax.
    (they would feel different if it were them.)
    And the rich want to lower the tax.
    I suspect it will be a push and stay the same.
    I’m ok with that.
    If the poor want more taxes they can go after the off-shores and “active” corporate loopholes.
    Attacking families won’t fly on either side.
    The republicans trying to pass a tax break will backfire. (like all the backfires the republicans have done)
    Republicans just can’t leave well enough…

  14. I think that members of the House should be called what they are: Representative. And senators called Senator. Since both are members of Congress, call each of them what they really are. Forget this Congressman bit.

  15. djc, I just wanna say thanx and praises to a guy who
    always backs up his posts with references. Unlike myself
    who usually goes the snarky name calling route. If not
    for you, I’d still be unaware that Tom Cotton wasn’t the
    Iran letter author for instance. Now I can despise him as
    a plagiarist as well as a traitor. If ever we should meet,
    drinks are on me, bro.

  16. If you think 5 million is Koch brother billions you are certainly not at accountant level intellect. Pfft.
    A house to retire in on any beach like Hawaii, South Beach Miami, Lauderdale, Key West, East Coast, West Coast, starts at 4 million. Heck most new homes in the country are near a Million these days.
    Since you dropped in the gutter to call me names, I’m not above stepping in the ditch to kick you back.
    Just because you have been an unsuccessful bitter looser in your life’s pursuit of happiness. You don’t need to kick sand in the face of those whom have worked smart and have been successful in their lives.
    Now, go pray your sins away.
    Oh, and stop sucking up all my tax money you ungrateful fool.
    djchefron#pauper

  17. At 5 million you are exempt from the estate tax. This shit aint rocket science
    The federal estate tax exemption—that’s the amount an individual can leave to heirs without having to pay federal estate tax—will be $5.43 million in 2015, up from $5.34 million for 2014. That’s another $90,000 that can be passed on tax-free. The top federal estate tax rate is 40%
    http://www.forbes.com/sites/ashleaebeling/2014/10/30/irs-announces-2015-estate-and-gift-tax-limits/

    Go cry your bullshit somewhere else

  18. Did anyone actually read point #2? It suggests that corporations pay more in taxes to other countries than they would to the U.S. in order to pay less taxes to the U.S. The result is more total taxes paid. Are we really supposed to believe this?

  19. Just think about it for a second. The working man, who spends the majority of his income on food, housing, clothes and transport to and from work, gets the highest tax bill for putting the major portion of his wages back into the economy. The wealthy get the lowest tax bill for effectively taking their money out of the economy. I’d like to think you were being sarcastic, but with the flat tax nonsense actually being taken seriously, it’s hard to tell.

  20. As a matter of fact, yes! I am tired of voters putting a Democrat in the White House and expecting him to stop the Republican shenanigans! If they can’t be bothered with the state houses, the house and the senate! If so many Democrats want to play Don Quixote instead of running ! Why should I fight the KKK ?

  21. harder, smarter: Is this the latest euphemism for stealing!? Because, that is probably what you are doing! We don’t believe in bitter! We think you should line in the Big House! The one with the Bars and guards! Maybe your victims would visit you from time to time!

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