[Most of the attention to corporate tax avoidance is directed at the nonpayment of federal taxes. But state taxes, which to a much greater extent fund K-12 education, are avoided at a stunning rate by Americas biggest companies. As a result, public school funding continues to be cut, and the worsening performance of neglected schools adds fuel to the reckless demands for privatization. Inner-city schools are being devastated by this insidious process. Chronic Nonpayment A 2011 report by Citizens for Tax Justice (CTJ) showed that corporations pay less than half of their required state taxes, which in addition to K-12 educational funding provide a significant part of pension funding. More recently, the report The Disappearing Corporate Tax Base found that the percentage of corporate profits paid as state income taxes has dropped from 7 percent in 1980 to about 3 percent today. It may be getting worse. A PayUpNow analysis of 25 of our nations largest corporations shows a total state tax payment of 2.4%, about a third of the required tax, based on the average maximum state tax rate of 7.3%. Among them were: ----Boeing, which paid zero federal taxes last year, and about 1/50 of its required state taxes. ----Caterpillar, which paid less than a quarter of its tax bill after recently threatening to leave Illinois. Rand Paul said Caterpillar should get an award for saving money. ----Verizon, which paid about one-tenth of its required tax. A company spokesman recently said, Verizon fully complies with all tax laws and pays its fair share of taxes. ----Google, which paid less than a quarter of its state tax bill. Referring to tax havens, Google Chairman Eric Schmidt said, I am very proud of the structure that we set up. Starving the Public Schools As a result of the decline in state tax money, education gets cut. Overall spending on K-12 public school students fell in 2011 for the first time since the Census Bureau began keeping records over three decades ago. The cuts have continued to the present day. Games Corporations Play to Take Our Education Funding A Good Jobs First report describes how companies play one state against another, holding their home states hostage for tax breaks under the threat of bolting to other states. Incompetent or complicit governors simply play along.]
Posted on: Mon, 05 Jan 2015 21:32:43 +0000