While state after state lines up to explore reducing income taxes in favor of increasing sales taxes we sit on a way to bring in untold millions of dollars of tax revenue. Much has been made of corporations’ practice of playing whack-a-mole with profits to avoid taxes, leaving an increasing share to individuals to absorb. The recent presidential cycle brought this up again (2012 candidates on taxes), and corporate taxation continues to hit the news cycle. Most recently related to their use of off-shore ‘subsidiaries’ utilized in some instances simply to avoid taxes. This hardly seems equitable.
As a small business employer/sole proprietor it’s hardly simple for me to set up a Cayman Islands business/account for the express purpose of avoiding U.S. federal taxes. Yet by some accounts over $1.7Trillion in U.S. corporate profits are scattered around various countries, including right here in the U.S.!, unable to be moved lest they be subject to U.S. corporate taxes. Boo-friggin’-hoo. Surely it’s simply equitable if the profits have been earned the taxes should be paid.
So as state legislatures start taking up such measures consider contacting them as well as your federal representatives concerning corporate tax matters. With individual tax season upon us the time is right for giving our elected officials a reminder that 1) we pay their salaries and 2) we’re responsible for getting them where they are.