Posted: 06/19/14 01:42, Edited: 06/19/14 23:12
by Dave Mindeman
Rep. Erik Paulsen has come out in defense of Medtronic's new Irish address as a simple response to a very "unfair" US tax code. A tax code that "forces" Medtronic to find offshore accounts to hide their profits and extort the country that has given them the economic system and environment to make all those profits.
All this uproar is over a corporate tax rate of 35% - which Paulsen is quick to point out is one of the highest in the world.
Except no corporate entity EVER pays 35%.
These convoluted statements from Paulsen and his cohorts about what the US gets in taxes from corporations is never the actual truth. Lobbyists for all these "maligned" corporations have set up so many deductions, and loopholes, and special privileges into the tax code that corporations pay much less than individual taxpayers.
The "effective" tax rate (or the amount actually paid) for Medtronic is 18% of profits. That's half the rate that Paulsen claims Medtronic is trying to escape from. Of course that is still more than the Irish corporate rate of 12.5% but Medtronic won't get an "effective" rate in Ireland - they will pay in full.
USA Today reported an analysis in February of 2014 of corporate tax....
A surprising number of companies in the Standard & Poor's 500, 57, have found ways to pay effective tax rates of zero, according to a USA TODAY analysis of data from S&P Capital IQ.
Verizon paid ZERO. Metlife paid ZERO. Seagate paid ZERO. And News Corp (owner of Fox) paid ZERO.
And when we get into these tax discussions on the poor overtaxed corporation, we get these faux calls for overhauling the tax code. The fact is these corporations have paid good lobbyist money to get all of these tax loopholes in place. They don't want a simpler tax code - they want it to be as complicated and unreadable as possible.
Because that's the way they wrote it.
Republicans can talk a lot of about the "unfair" tax code, but the only ones it is unfair to is John Q. Public who makes up the difference when Exxon pays ZERO on their profits. And I guarantee you that the Republican talk is just that - TALK! Because they won't change anything about the US tax code unless the corporate lawyers give them the changes in writing.