An intolerable free ride
What's to be done? Here are some thoughts:
First, fund the IRS so that it can do its job. Recommendations to that effect have already been made by the IRS Oversight Board, a panel of business experts Congress established to monitor the IRS. Enact them now.
Second, change the rules so that ostensible foreign corporations whose shares are mostly owned by Americans are treated for tax purposes as American companies.
Third, stop U.S. companies shifting profits made here to subsidiaries or affiliated companies overseas. Companies should be given full credit for any tax they pay in foreign countries, but they should still be obligated to treat profits earned here as taxable here in the year they are earned.
Corporate America has been awfully well treated by recent revisions of the tax laws. The very least corporations can do is agree to comply with these lenient tax laws.
A gross injustice is being perpetrated on the vast majority of the population, and it must be stopped.
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