SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Corporations that desert America by sheltering a large portion of their profits abroad or moving their headquarters to another country should no longer be entitled to the advantages of being American. (Image: RobertReich.org)
Why Corporate Tax Deserters Shouldn't Get the Benefits of Being American Corporations
Apple is only the latest big global American corporation to use foreign tax shelters to avoiding paying its fair share of U.S. taxes. It's just another form of corporate desertion.
Corporations are deserting America by hiding their profits abroad or even shifting their corporate headquarters to another nation because they want lower taxes abroad. And some politicians say the only way to stop these desertions is to reduce corporate tax rates in the U.S. so they won't leave.
Wrong. If we start trying to match lower corporate tax rates around the world, there's no end to it.
Sep 14, 2016
Apple is only the latest big global American corporation to use foreign tax shelters to avoiding paying its fair share of U.S. taxes. It's just another form of corporate desertion.
Corporations are deserting America by hiding their profits abroad or even shifting their corporate headquarters to another nation because they want lower taxes abroad. And some politicians say the only way to stop these desertions is to reduce corporate tax rates in the U.S. so they won't leave.
Wrong. If we start trying to match lower corporate tax rates around the world, there's no end to it.
Instead, the President should use his executive power to end the financial incentives that encourage this type of corporate desertion. President Obama has already begun, but there is much left that could be done.
In addition, corporation that desert America by sheltering a large portion of their profits abroad or moving their headquarters to another country should no longer be entitled to the advantages of being American.
1. They shouldn't be allowed to influence the U.S. government. They shouldn't be allowed to contribute to U.S. political campaigns, or lobby Congress, or participate in U.S. government agency rule-making proceedings. And they no longer have the right to sue foreign companies in U.S. courts for acts committed outside the United States.
2. They shouldn't be entitled to generous government contracts. "Buy American" provisions of the law should be applied to them.
3. Their assets around the world shouldn't any longer be protected by the U.S. government. If their factories and equipment are expropriated somewhere around the world, they shouldn't expect the United States to negotiate or threaten sanctions, or use our armed forces to protect their investments. And if their intellectual property - patents, trademarks, trade names, copyrights - are disregarded, that's their problem too. Don't expect any help from us.
In fact, their interests should be of no concern to the U.S. government - in trade negotiations, climate negotiations, international treaties reconciling American law with the laws of other countries, or international disputes over access to resources.
They don't get to be represented by the U.S. government because they're no longer American.
It's simple logic. If corporations want to desert America in order to pay less in taxes, that's their business. But they should no longer have the benefits that come with being American.
Join Us: News for people demanding a better world
Common Dreams is powered by optimists who believe in the power of informed and engaged citizens to ignite and enact change to make the world a better place. We're hundreds of thousands strong, but every single supporter makes the difference. Your contribution supports this bold media model—free, independent, and dedicated to reporting the facts every day. Stand with us in the fight for economic equality, social justice, human rights, and a more sustainable future. As a people-powered nonprofit news outlet, we cover the issues the corporate media never will. |
This work is licensed under a Creative Commons Attribution-Share Alike 3.0 License.
Robert Reich
Robert Reich, is the Chancellor's Professor of Public Policy at the University of California, Berkeley, and a senior fellow at the Blum Center for Developing Economies. He served as secretary of labor in the Clinton administration, for which Time magazine named him one of the 10 most effective cabinet secretaries of the twentieth century. His book include: "Aftershock" (2011), "The Work of Nations" (1992), "Beyond Outrage" (2012) and, "Saving Capitalism" (2016). He is also a founding editor of The American Prospect magazine, former chairman of Common Cause, a member of the American Academy of Arts and Sciences, and co-creator of the award-winning documentary, "Inequality For All." Reich's newest book is "The Common Good" (2019). He's co-creator of the Netflix original documentary "Saving Capitalism," which is streaming now.
Apple is only the latest big global American corporation to use foreign tax shelters to avoiding paying its fair share of U.S. taxes. It's just another form of corporate desertion.
Corporations are deserting America by hiding their profits abroad or even shifting their corporate headquarters to another nation because they want lower taxes abroad. And some politicians say the only way to stop these desertions is to reduce corporate tax rates in the U.S. so they won't leave.
Wrong. If we start trying to match lower corporate tax rates around the world, there's no end to it.
Instead, the President should use his executive power to end the financial incentives that encourage this type of corporate desertion. President Obama has already begun, but there is much left that could be done.
In addition, corporation that desert America by sheltering a large portion of their profits abroad or moving their headquarters to another country should no longer be entitled to the advantages of being American.
1. They shouldn't be allowed to influence the U.S. government. They shouldn't be allowed to contribute to U.S. political campaigns, or lobby Congress, or participate in U.S. government agency rule-making proceedings. And they no longer have the right to sue foreign companies in U.S. courts for acts committed outside the United States.
2. They shouldn't be entitled to generous government contracts. "Buy American" provisions of the law should be applied to them.
3. Their assets around the world shouldn't any longer be protected by the U.S. government. If their factories and equipment are expropriated somewhere around the world, they shouldn't expect the United States to negotiate or threaten sanctions, or use our armed forces to protect their investments. And if their intellectual property - patents, trademarks, trade names, copyrights - are disregarded, that's their problem too. Don't expect any help from us.
In fact, their interests should be of no concern to the U.S. government - in trade negotiations, climate negotiations, international treaties reconciling American law with the laws of other countries, or international disputes over access to resources.
They don't get to be represented by the U.S. government because they're no longer American.
It's simple logic. If corporations want to desert America in order to pay less in taxes, that's their business. But they should no longer have the benefits that come with being American.
Robert Reich
Robert Reich, is the Chancellor's Professor of Public Policy at the University of California, Berkeley, and a senior fellow at the Blum Center for Developing Economies. He served as secretary of labor in the Clinton administration, for which Time magazine named him one of the 10 most effective cabinet secretaries of the twentieth century. His book include: "Aftershock" (2011), "The Work of Nations" (1992), "Beyond Outrage" (2012) and, "Saving Capitalism" (2016). He is also a founding editor of The American Prospect magazine, former chairman of Common Cause, a member of the American Academy of Arts and Sciences, and co-creator of the award-winning documentary, "Inequality For All." Reich's newest book is "The Common Good" (2019). He's co-creator of the Netflix original documentary "Saving Capitalism," which is streaming now.
Apple is only the latest big global American corporation to use foreign tax shelters to avoiding paying its fair share of U.S. taxes. It's just another form of corporate desertion.
Corporations are deserting America by hiding their profits abroad or even shifting their corporate headquarters to another nation because they want lower taxes abroad. And some politicians say the only way to stop these desertions is to reduce corporate tax rates in the U.S. so they won't leave.
Wrong. If we start trying to match lower corporate tax rates around the world, there's no end to it.
Instead, the President should use his executive power to end the financial incentives that encourage this type of corporate desertion. President Obama has already begun, but there is much left that could be done.
In addition, corporation that desert America by sheltering a large portion of their profits abroad or moving their headquarters to another country should no longer be entitled to the advantages of being American.
1. They shouldn't be allowed to influence the U.S. government. They shouldn't be allowed to contribute to U.S. political campaigns, or lobby Congress, or participate in U.S. government agency rule-making proceedings. And they no longer have the right to sue foreign companies in U.S. courts for acts committed outside the United States.
2. They shouldn't be entitled to generous government contracts. "Buy American" provisions of the law should be applied to them.
3. Their assets around the world shouldn't any longer be protected by the U.S. government. If their factories and equipment are expropriated somewhere around the world, they shouldn't expect the United States to negotiate or threaten sanctions, or use our armed forces to protect their investments. And if their intellectual property - patents, trademarks, trade names, copyrights - are disregarded, that's their problem too. Don't expect any help from us.
In fact, their interests should be of no concern to the U.S. government - in trade negotiations, climate negotiations, international treaties reconciling American law with the laws of other countries, or international disputes over access to resources.
They don't get to be represented by the U.S. government because they're no longer American.
It's simple logic. If corporations want to desert America in order to pay less in taxes, that's their business. But they should no longer have the benefits that come with being American.
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.