Originally Posted by tribalogical
they are paying that 2% on top of, and in addition to local taxes.
It depends on the setup they have. They might not be required to pay much local tax if their profits are taxed in the US but they aren't bringing those profits home and in fact reinvesting a significant amount permanently overseas. If you were due to pay corporation tax on overseas profits in the US on repatriating it and instead just spend most of it on foreign suppliers, you'd pay little to no corporation tax.
Their filing amount is not being reported as US tax liability but "overseas corporation tax on foreign profits":
"The famous US company paid about £445 million in coporation tax outside the US... According to reports, the company shifted money off through low tax countries and tax havens such as the British Virgin Islands to avoid the regulations. It has been estimated that Apple's UK tax bill which came in at £14.4 million should have looked more like £570 million."
Whatever it is, some of the companies doing this got their asses hauled before a committee:
"Google, Amazon and Starbucks will be hauled before the Commons public accounts committee on Monday to explain why they pay so little tax to the exchequer."
I think the Monday in question was yesterday - there's a protest planned by the usual unwashed at Starbucks:
Some of the responses from the companies are here:
Any regulations that come from it will affect anyone who has been doing the same. I won't hold my breath, if government was as efficient at enforcing legislation as companies are at circumventing it, companies would probably be happy to pay their fair share.
Originally Posted by tribalogical
I don't see why this is "disgusting" or upsetting to anyone. Hell, their Federal tax liability went from under $4bn to OVER $12bn across three reporting years? Doubling year on year and people are complaining?
To some people the amount is more important than the rate. They have increased profits over that time period so if the rate stays the same then of course their tax amount increases. Paying what they are due in some areas doesn't excuse tax avoidance in others. This is where people are quick to point out that these companies are paying what they are legally due but using legal loopholes isn't tolerated for criminals who escape justice for violent offenses and it shouldn't be tolerated when it involves wealthy people becoming unfairly more wealthy.
The issue does create a class divide between the wealthy who point to the amount they pay rather than the rate and proclaim they pay more than the 'moochers' who earn small amounts (because obviously they are either not working hard enough or not doing important enough work). If you run a business, you inevitably feel the weight of government more than employees because you have to make the payments. Employees have their portion taken before they can do anything about it so they aren't as much aware of it but there is a sense that employees can do nothing to avoid it whereas the people benefitting from their work can.
Over the past few years, wealth has been sharply redistributed from the poor to the wealthy:
That sort of thing happens when rich people avoid taxes. Now we know how much rich people hate wealth redistribution so I have no doubt they must be absolutely livid about this.