Paul Buccheit has written an important article about how big corporations are taking funding away from public schools by not paying their fair share of corporate taxes.
Many of the largest U.S. corporations aren’t paying the state taxes that should be funding our schools. Kids are the victims. So are the average Americans who are forced to pay higher property taxes, sales taxes, and excise taxes to meet educational budgets. Government and media sources would have us believe there’s no alternative, for in a market-driven world it’s heresy to make demands of big business, even when the companies are flagrantly avoiding their taxes.
Illinois: Schools Held Hostage by Just Six Corporate Tax Avoiders
The mayor and governor of Illinois are blaming each other for the Chicago Public School budget crisis, and Illinois colleges are in danger of being shut down. But Illinois lost over $1.3 billion (more than the $1.1 billion school budget shortfall) in 2015 state tax revenue to just six companies (Abbott, ADM, Boeing, Deere, Exelon, United), which together paid much less than 1% of their profits in state taxes, just pennies on the dollar for the required rate of 7.75%.
Yet it’s the children and the taxpayers of Illinois who bear the burden of reform. Illinois has one of the “Ten Most Regressive State Tax Systems,” according to the Institute on Taxation and Economic Policy. In Chicago, Mayor Emanuel recently announced another $200 million in education cuts and then raised property taxes by a half-billion dollars, but the mainstream media repeatedly hushes up the corporate tax avoidance.
California: Funding Goes to Charters as Corporations Take Tax Refunds
In California, where depleted public schools are giving way to business-happy ‘reformers’ and charter schools, Google took a $400 million refund on its $8 billion in U.S. profits. Chevron has over half of its oil and gas wells in the United States, yet the company claimed a loss of nearly $3 billion in the U.S., a foreign profit of $7.7 billion, and a refund on all its U.S. taxes. Intel managed to pay 1/2 of one percent in state taxes, on nearly $9 billion in U.S. profits…..
Buchheit shows how similar tax avoidance is occurring on the East Coast and elsewhere.
Big business might claim that their minimal taxes are a result of agreements made with states to promote economic growth and create jobs. But the facts come from Good Jobs First and the New York Times, reporting on 2011-12 data:
* Federal, state, and local governments give up $170 billion per year in tax incentives.
* States were forced to cut public services and raise taxes by a collective $156 billion in 2011.
* The subsidy cost per job averaged $456,000 for 170 ‘megadeals’ analyzed by Good Jobs First.
It’s a devious double whammy: Taxpayers are giving money to the corporations and then paying a second time to meet the needs of the underfunded public schools. Corporate annual reports never mention the need to support the U.S. educational system that helped make their companies prosperous.
cross-posted with comment at
http://www.opednews.com/Quicklink/Paul-Buchheit-How-Corpora-in-General_News-Cheating_Corporate-Corruption-Crime_Corporate-Crime_Corporate-Greed-160411-827.html
What? Boeing is not paying it’s fair share of taxes in Illinois? Shocked.
They got $8.7 billion in tax breaks from WA State thru 2040, plus they avoided another $19.5 million in sales tax last year, yet WA State cannot fully fund it’s public schools, (although legislators could manage to find money for charter schools).
Then they have the nerve to say they cannot find enough qualified workers & that public schools are not turning out an educated workforce. (Microsoft does/says the same.)
If Boeing and Microsoft paid their taxes, the public schools of Washington state would be well-funded
Boeing has received billions of dollars in US government contracts, but in some years pays no income tax (and sometimes even gets a refund!)
And Bill Gates has made billions off of the American public but his company Microsoft is keeping $100 billion in offshore accounts to avoid about $30 billion in US taxes.
The hypocrisy of these people knows no bounds.
SomeDAM Poet: no disrespect but an old dead Roman guy beat you to it by almost 2,000 years—
“For greed all nature is too little.”
Lucius Annaeus Seneca. And he didn’t even have a pineapple and a hare up his sleeve…
I’d better stop while I’m ahead.
😎
In Houston companies are exploiting the fact that there is a state law that does not allow the state to know the sale price of a building. Big companies with teams of lawyers sue the city every year. Since the city can’t come up with any comparables for commericial properties, the companies win a significant reduction in property tax bills year after year. The difference is made up by significant increases in the property taxes of home owners.
Not only are the tax dodgers, they’re directly responsible for funding of public schools and I imagine, other worthwhile programs. Greed!
Arizona is a major player in this one. Voters tried to protect schools with Prop 301 in 2001. Former CEO, now Governor Ducey first broke that law as State Treasurer, now as Governor. He has the Koch money supporting him to destroy that law with the May vote on Prop 123. No new tax money, just a way to payback the school 75cents on the dollar with State Land Trust Fund to settle a lawsuit the state lost, but continues to appeal. And no plan for funding the school in the future. And yet they can still find plenty money in tax breaks to give the Corporations. Funny thing, most corps with well paying jobs keep telling the lawmakers to fund education it they want the companies to come to AZ. Are they listening? NOPE!
Hillary Clinton and her campaign have profited from pro-charter entities.
Alice Walton donated $353,400 (which happens to be the price tag to sit at a head table this week with Hillary and George and Amal Clooney) to Hillary’s Victory Fund.
In 2013, pro-charter Boston Consulting Group paid Hillary $225,000 in speaking fees.
Hillary should release the transcript of her BCG speech before educators and supporters of public schools cast their support for her in the primary.
Here is a link to a petition asking her to do so: https://goo.gl/D5AZDG