Target: U.S. Congress
Goal: Encourage corporations to pay their fair share of taxes by not supporting a corporate tax holiday
Corporations keep money oversees to avoid paying taxes in the United States. Over 70 different U.S. corporations hold an estimated $1.24 trillion overseas. These corporations refuse to transfer foreign earnings into the United States to avoid paying a 35% tax rate. Many of these companies claim that a tax holiday would allow them to transfer these funds into the United States for use to stimulate the economy through investment and job creation. However, the last time a tax holiday was instituted 92% of the $312 billion of foreign earnings that was brought into the United States went towards executive pay and buyback of shares. Furthermore many of the companies that benefitted from the tax holiday ended up laying off tens of thousands of workers. Companies that did use the foreign earnings for domestic investment admitted that they would have invested in domestic projects if the tax holiday did not occur. Tax holidays benefit corporations at the expense of hard working tax payers.
Taxes are the primary way the government generates revenue to fund vital programs and services. Social Security, Medicare, and Medicaid are funded through taxes and provide benefits to retirees and impoverished individuals. Taxes fund transportation and infrastructure projects, education, science and medical research, and safety net programs. When corporations fail to pay their fair share of taxes funding for these important programs are jeopardized.
The majority of corporations already pay a lower tax rate than most individual tax payers. The average corporate tax rate for 2011 was 12.1%, well below the 35% tax rate they should be paying. In fact the corporate tax rate is at a 40 year low, while corporate profits are at a 60 year high and employee wages have fallen. Despite paying low taxes, corporations are lobbying for a tax holiday to reduce the tax rate for repatriating foreign funds. The reduction would cost taxpayers $80 billion. Critical government programs are already suffering from reduced funding and a tax holiday would make the situation even worse.
By signing the petition below you will help urge Congress to oppose a corporate tax holiday to help ensure that corporations pay their fair share of taxes.
Dear U.S. Congress,
U.S. corporations hoard money overseas to avoid paying taxes. Over 70 corporations have an estimated $1.24 trillion stored outside the United States to avoid paying a 35% tax rate to bring the money into the United States. These same corporations already pay lower tax rate on average than many American workers. In 2011 the average corporate tax rate was 12.1% which is the lowest tax rate in the past 40 years at a time when companies are reporting profits that are at a 60 year high. At the same time wages are falling and unemployment remains high.
Corporations such as Apple claim that a tax holiday would spur investment and job creation. The last time a tax holiday was instituted the large majority of the money repatriated went towards executive pay and the buyback of shares and not towards job creation. In fact many companies that benefitted from the tax repatriation went on to cut thousands of jobs.
Taxes fund vital government programs and services. Social Security, Medicare, and Medicaid are vital programs that provide benefits to retirees and low income individuals. Taxes fund transportation programs, infrastructure improvements, education, and scientific research. These programs benefit all Americans and are already facing funding cuts. A tax holiday would cost taxpayers $80 billion without providing any direct benefits.
I urge you to oppose a corporate tax holiday and encourage corporations to pay their fair share of taxes.
[Your Name Here]