How to Repeal the Tax Loophole That Allows Companies to Hide Their Profits in Offshore Accounts

More than a third of a century after Ronald Reagan led America down a costly and unnecessary path into extreme income and wealth inequality, the opportunity to restore broad prosperity is rising before us. This is a moment not for despair, but resolve—and hard work.

Income inequality has become so outrageous that even Republicans vying for their party’s presidential nomination are talking about it, though not their party’s role in creating it or any workable solutions. On television the talking heads wring their hands, saying, “If only we could afford the costs of digging ourselves out of the economic hell most Americans have been shoved into.”

Actually, America has an immense pool of money that can be put to work closing the nation’s extreme inequality gap. Doing so will also improve our health, longevity, level of education, and knowledge…

In effect Uncle Sam loans these companies their taxes at 0 percent interest and then pays them interest on the loan. If you could get a bank to do that for you when you buy a house, after three decades with no payments you would have enough money to pay the bank the deferred purchase price and enjoy three to four times the house’s price in cash.

Of course, no banker is dumb enough to give you that deal. But Congress gives it to multinationals like Apple and GE and to billionaires like Warren Buffett every day. So when their shareholder reports indicate that they paid a tiny percentage of their profits in taxes, they really made a profit and paid Uncle Sam a small fee on their profits from deferring payment.

Here’s the good news buried in that outrage: These huge corporate deferral accounts can be tapped to pay for investments that will move us away from extreme inequality, generate millions of new jobs, and create future wealth through basic research and improved infrastructure…

Read the entire article here: How to Repeal the Tax Loophole That Allows Companies to Hide Their Profits in Offshore Accounts

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