Corporate Tax Loopholes

If Senate Republicans are serious about reducing the deficit and the national debt, “I hope they will join us in making sure that some of the largest, most profitable corporations pay their fair share in taxes,” Sen. Bernie Sanders said at a Senate Budget Committee hearing on Tuesday. “Each and every year, we lose $100 billion in revenue because large corporations and the wealthy are stashing their profits in the Cayman Islands, Bermuda and other offshore tax havens. That has got to stop,” Sanders said.

He cited examples of some of the most profitable corporations in America which in some years paid no federal income taxes. General Electric made nearly $34 billion in profits in the United States from 2008 through 2013 but paid no federal income taxes. Instead, GE received a tax rebate of nearly $3 billion from the Internal Revenue Service. Verizon made more than $42.5 billion in U.S. profits during the same period, paid no federal income taxes and got $732 million from the IRS. And in 2013, Citigroup made $6.4 billion in profits, paid no federal income taxes and claimed a $260 million rebate from the IRS.

“Instead of cutting programs for some of the most vulnerable people in our society, we have got to make sure that the largest, most profitable corporations pay their fair share in taxes.

The panel heard testimony from Shaun Donovan, President Barack Obama’s budget director. In an exchange with Sen. Sanders, Donovan outlined the White House plan to close corporate tax loopholes.

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