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With the second anniversary approaching of the Supreme Court’s decision in the Citizens United case – which opened the floodgates to corporate spending on elections – CALPIRG Education Fund and Citizens for Tax Justice reveal 30 corporations that spent more to lobby Congress than they did in taxes.
“When it comes to politics, corporations spend money to make money,” said CALPIRG Policy Director Pedro Morillas. “And too often boosting their bottom line comes at the taxpayers’ expense.”
By exploiting loopholes and special provisions in the tax code, 280 consistently profitable Fortune 500 companies paid about half the statutory corporate tax rate while spending $2 billion to lobby Congress on tax policy and other issues.
The report also looks at the “Dirty Thirty” particularly aggressive tax avoiders that spent more on federal lobbying than income taxes between 2008 and 2010. Twenty-nine of these corporations actually received a net tax rebate.
“When the political process becomes a profit center for powerful interests, there are some serious flaws that need to be addressed,” added Morillas.
The report takes a deeper look at one of the most egregious ways corporations skirt taxes – by shifting profits legitimately earned in America to offshore tax havens, where they are subject to little, if any taxes. At least 22 of the thirty companies studied had subsidiaries in tax haven countries.
“The ability for corporations to game the system is mostly based on their ability to spend money on politics. In the wake of the Citizens United decision, the influence of moneyed interests will only continue to grow,” continued Morillas.
The “Dirty Thirty” companies all told made $163.7 billion in profits while paying zero dollars in federal income taxes and collecting a total of $10.6 billion in various tax rebates. Meanwhile, they collectively spent $475.7 million in lobbying expenses for the three year period.
“Large majorities of Americans say corporations pay too little in taxes, and yet members of Congress take no action to close corporate tax loopholes,” said CTJ director Robert McIntyre.
“Lawmakers insist that there is a budget crisis and that Americans must sacrifice some of the essential public services they depend on. But lawmakers do nothing to get corporations to pay their fair share in taxes. The most plausible explanation for lawmakers ignoring their constituents on this issue is the power of corporate money in politics. Campaign contributions and highly-paid lobbyists give corporate executives a louder voice than the millions and millions of working families who wonder why they pay more in taxes than GE, Boeing, Wells Fargo, Verizon, and dozens of other huge, profitable corporations, all put together,” McIntyre added.
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