(Newark Post) Josh Shannon reports ~ Liberal economic reform group starts local chapter
Matt Gardner, executive director of the Institute on Taxation and Economic Policy, speaks at Home Grown Café July 26 at an event to celebrate the launch of a Delaware chapter of Americans for Democratic Action. Organized in part by former councilman Ezra Temko, the chapter will advocate on various economic issues. The first meeting is set for 7 p.m. Aug. 28 at the Newark Free Library.
The downstate event warranted an actual story - (Cape Gazette) Kara Nuzback reports ~ Tax expert speaks to advocacy group - Gardner: DuPont pays no state, federal income tax
Lewes — Fortune 500 companies are using loopholes to legally avoid paying taxes to Delaware and the federal government, a tax expert says.Find out more about the August 28th meeting on facebook HERE
Matt Gardner, executive director of the Institute on Taxation and Economic Policy spoke to a group of about 15 people at an Americans for Democratic Action meeting, July 26, at Bethany Blues in Lewes.
Gardner said he researches tax loopholes that allow corporations, including DuPont, to avoid paying any taxes to the federal or state government. “We need revenue-raising tax reform,” Gardner said. “It has to focus on the corporate side.”
The federal corporate tax rate is 35 percent; Delaware’s corporate tax rate is 8.7 percent. Gardner said the institute investigated three years of annual reports from 280 Fortune 500 companies.
He said 78 companies paid no federal taxes for at least one of the three years, and 30 paid no federal taxes for the entire three-year period.
The same 280 companies paid an average of 3 percent in taxes on a state level, he said. Sixty companies paid no state taxes for at least one of the three years, and a few paid no state taxes during any of the three years, he said.
Gardner said Delaware-based DuPont earned $2.1 billion over three years, paid no state or federal tax and received a federal tax refund. “They managed to zero themselves out on both the federal and state level,” Gardner said.
DuPont is breaking no laws, he said; it is only using tax breaks Congress put in place. “It’s as much Congress that you have to hold responsible for changing these things,” he said.
Garner said there are loopholes in the corporate tax system, including accelerated depreciation of assets, tax breaks for corporate stock options, industry-specific tax breaks and off-shoring, which exempts money from taxation until it is repatriated.
Off-shoring is a practice exercised by companies such as Apple, Microsoft and Nike, Gardner said. “I’m talking about sending a suitcase full of money to the Cayman Islands,” he said.
Nike, for example, has a dozen subsidies in Bermuda, all named after types of shoes, Gardner said.
Compared to most developed nations, 35 percent is a low federal tax rate, Gardner said. He said some U.S. House Republicans want to lower the corporate income tax to promote competitiveness. Gardner said it would be unwise to lower the tax during a recession.
“Any reduction in taxes is going to be a tax shift to someone else,” Gardner said. He said middle-income Americans would likely shoulder the burden if corporations were allowed to pay less.
Gardner said European countries in the Organisation for Economic Co-operation and Development are working to battle off-shoring. He said the OECD’s research could make it easier for the United States to also close the tax loophole.
Not all corporations are skirting federal taxes, Gardner said. Walmart paid an average of 30 percent per year in federal taxes during the study, he said. “Say what you want about Walmart; they pay their fair share of the federal income tax,” he said.
Gardner said the corporate income tax should be preserved, but countries must communicate about companies that relocate money to skirt taxes. “We need more disclosure,” he said. “If they’re not paying 35 percent, they need to explain why.”
For more information on the institute’s research on corporate taxes, go to itep.org.
Come to our first chapter meeting!Delaware ADA HERE
Founded in 1947 by Eleanor Roosevelt and other leading progressives, Americans for Democratic Action works for social and economic justice through grassroots advocacy.
Meeting Agenda:
7:00-7:15 Progressive Icebreaker
7:15-7:25 All About ADA
w/ special guest Peter Schott, who spend decades as a Board Member for ADA nationally
7:25-7:40 Nuts and Bolts of our Chapter
7:40-7:50 Guest Speaker: Rep. Paul Baumbach
Topic: Social and Economic Justice Issues on Delaware’s Horizon
7:50-8:00 Issue Identification
8:00-8:05 Next Steps
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8:05-? Drinks at Home Grown
and the group site HERE
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