June, 12 2013, 11:13am EDT
For Immediate Release
Contact:
Lacy MacAuley, Institute for Policy Studies
(202) 445-4692 main, (202) 234-9382 second, lacy@ips-dc.org
Report: Pro-Austerity CEOs Seek to Widen Tax Haven Loophole
In advance of a congressional hearing on tax havens, a new Institute for Policy Studies report reveals the massive windfalls members of the "Fix the Debt" campaign stand to gain from their proposals to widen tax haven loopholes.
WASHINGTON
In advance of a congressional hearing on tax havens, a new Institute for Policy Studies report reveals the massive windfalls members of the "Fix the Debt" campaign stand to gain from their proposals to widen tax haven loopholes.
The Fix the Debt campaign is a heavily funded corporate lobby group pushing for cuts to Social Security and Medicare and more corporate tax breaks. One of their main goals is a "territorial" tax system. This reform would increase incentives to exploit tax havens by permanently exempting U.S. corporations' foreign earnings from U.S. federal income taxes. Fix the Debt Co-Founders Erskine Bowles and Alan Simpson made this reform a centerpiece of their recently released deficit reduction proposal. The House Ways and Means Committee will hold a hearing on June 13th to examine multinational corporations' use of low or no-tax countries to shift profits offshore to avoid paying U.S. taxes.
Key findings from the new IPS report "Corporate Pirates of the Caribbean":
* The 59 Fix the Debt member corporations that reported their offshore profits had a combined total of more than $544 billion at the end of 2012, up from $473 billion in 2011. The average offshore stash per company rose 15 percent last year to $9.4 billion.
* Currently, these profits are not subject to U.S. corporate income taxes unless they are brought back to the United States (also known as "repatriation"). If Congress adopts Fix the Debt's proposed territorial tax system, these 59 companies would stand to win as much as $173 billion in immediate tax windfalls.
* The biggest potential winner is General Electric, which could reap a tax windfall of as much as $38 billion on its overseas earnings stash of $108 billion.
* The Fix the Debt member with the largest increase in offshore untaxed profits in 2012 among firms with more than $1 billion in offshore profits was Honeywell, with a 43 percent increase to $11.6 billion in 2012.
* Twenty-two firms reported increases of more than 20 percent in their untaxed offshore profits last year.
"These Fix the Debt corporations are like modern day pirates," says report co-author Scott Klinger. "Their crews are not sword-wielding ruffians, but high-priced lobbyists and accountants who fight for, win, and then exploit loopholes in the tax code that allow them to avoid paying their fair share of the tax burden."
"If these corporate CEOs were serious about strengthening the American economy, they wouldn't be seeking more tax breaks that will only add to the national deficit," adds Sarah Anderson, a report co-author.
The report is available here: https://www.ips-dc.org/reports/corporate_pirates
This is the latest in a series of IPS exposes on the Fix the Debt campaign.
Institute for Policy Studies turns Ideas into Action for Peace, Justice and the Environment. We strengthen social movements with independent research, visionary thinking, and links to the grassroots, scholars and elected officials. I.F. Stone once called IPS "the think tank for the rest of us." Since 1963, we have empowered people to build healthy and democratic societies in communities, the US, and the world. Click here to learn more, or read the latest below.
LATEST NEWS
Federal Court Rules Racist Florida Voting Map Backed by DeSantis Can Remain for 2024 Election
“This is not only disappointing, but it sets a perilous precedent," said Ellen Freidin, CEO of FairDistricts NOW.
Mar 28, 2024
A federal three-judge panel unanimously ruled on Wednesday that Florida's congressional map may remain after it was challenged by former Rep. Al Lawson and the watchdog group Common Cause.
Lawson is a black Democrat whose district was dismantled when the map was created in 2022. Lawson and Common Cause alleged that the map was discriminatory against Black voters, but the federal court rejected those claims. Two of the three judges on the panel were appointed by Republican presidents.
“After clearly recognizing Florida’s history of racial discrimination, the court ignored its most recent iteration, greenlighting legislative adoption of the Governor’s racially motivated map,” says @CommonCauseFL’s Amy Keith, on the discriminatory map ruling.
— Common Cause (@CommonCause) March 28, 2024
The plaintiffs argued that Florida Gov. Ron DeSantis was acting with racial animus when he called for Lawson's district to be dismantled. The court ruled that even if DeSantis was acting with racial animus, the plaintiffs couldn't prove the Legislature was when it created the map.
"This is not only disappointing, but it sets a perilous precedent. The court is saying that a state legislature can erase a performing Black district for political gain as long as it can blame the governor for coming up with the racist scheme in the first place," said Ellen Freidin, CEO of FairDistricts NOW. "The ultimate result permits legislators to conspire with the governor to keep themselves and their party in power while remaining insulated from the law."
A Florida judge had ruled the map was unconstitutional in 2022 because "it diminishes African Americans' ability to elect candidates of their choice."
One of the judges on the federal court panel, U.S. Circuit Judge Adalberto Jordan, did say he believed DeSantis had racist reasoning behind his actions.
"I do not think that Governor DeSantis harbors personal racial animus toward Black voters," Jordan wrote. "But I do believe that he used race impermissibly as a means to achieve ends (including partisan advantage) that he cannot admit to."
Keep ReadingShow Less
US Leads Charge as Surge of Oil and Gas Projects Threaten Hope for Livable Planet
"The science is clear: No new oil and gas fields, or the planet gets pushed past what it can handle," said one analyst.
Mar 28, 2024
Fossil fuel-producing countries late last year pledged to "transition away from fossil fuels," but a report on new energy projects shows that with the United States leading the way in continuing to extract oil and gas, governments' true views on renewable energy is closer to a statement by a Saudi oil executive Amin Nasser earlier this month.
"We should abandon the fantasy of phasing out oil and gas," the CEO of Saudi Aramco, the world's largest oil company, said at an energy conference in Houston.
A new report published Wednesday by Global Energy Monitor (GEM) suggests the U.S. in particular has abandoned any plans to adhere to warnings from climate scientists and the International Energy Agency (IEA), which said in 2021 that new oil and gas infrastructure has no place on a pathway to limiting planetary heating to 1.5°C.
Despite the stark warning, last year at least 20 oil and gas fields worldwide reached "final investment decision," the point at which companies decide to move ahead with construction and development. Those approvals paved the way for the extraction of 8 billion barrels of oil equivalent (boe).
By the end of the decade, companies aim to sanction nearly four times that amount, producing 31.2 billion boe from 64 oil and gas fields.
The U.S. led the way in approving new oil and gas projects over the past two years, GEM's analysis found.
An analysis by Carbon Brief of GEM's findings shows that burning all the oil and gas from newly discovered fields and approved projects would emit at least 14.1 billion tonnes of carbon dioxide.
"This is equivalent to more than one-third of the CO2 emissions from global energy use in 2022, or all the emissions from burning oil that year," said Carbon Brief.
GEM noted in its analysis that oil companies and the policymakers who continue to support their planet-heating activities have come up with numerous "extraction justifications" even as the IEA has been clear that new fossil fuel projects are incompatible with avoiding catastrophic planetary heating.
The report notes that U.S. Sen. Lisa Murkowski (R-Alaska) "supported ConocoPhillips' Willow oil field, arguing that the Alaskan oil and gas industry has a 'better environmental track record,' and not approving the project 'impoverish[es] Alaska Natives and blame[s] them for changes in the climate that they did not cause.'"
Carbon Brief reported that oil executives have claimed they are powerless to stop extracting fossil fuels since demand for oil and gas exists for people's energy needs, with ExxonMobil CEO Darren Woods tellingFortune last month that members of the public "aren't willing to spend the money" on renewable energy sources.
A poll by Pew Research Center last year found 67% of Americans supported the development of alternative energy sources. Another recent survey by Eligo Energy showed that 65% of U.S. consumers were willing to pay more for renewable energy.
"Oil and gas producers have given all kinds of reasons for continuing to discover and develop new fields, but none of these hold water," said Scott Zimmerman, project manager for the Global Oil and Gas Extraction Tracker at GEM. "The science is clear: No new oil and gas fields, or the planet gets pushed past what it can handle."
Climate scientist and writer Bill McGuire summarized the viewpoint of oil and gas executives and pro-fossil fuel lawmakers: "Climate emergency? What climate emergency?"
The continued development of new oil and gas fields, he added, amounts to "pure insanity."
Keep ReadingShow Less
Just ‘Stop Drilling,’ Critics Say After Biden Admin Finalizes Methane Limits
The new Biden administration rule will limit methane emissions, but critics say it's time to stop drilling for fossil fuels.
Mar 28, 2024
The Biden administration on Tuesday finalized rules that will force oil and gas companies to reduce their methane emissions, but critics say the administration needs to do more to curb a key driver of the planet-warming pollution: fossil fuel drilling.
Methane is a potent greenhouse gas, and the Bureau of Land Management's new rules will require that fossil fuel companies contain methane leaks at oil and natural gas wells that are on federal land, and they will also have to limit how much methane they burn off.
Critics say the only solution that will truly address the climate crisis is to stop drilling entirely. Recently released Interior Department data shows that the Biden administration has approved close to 50% more oil and gas drilling permits on public lands than the Trump administration did during its first three years.
"The best way to eliminate methane pollution from public lands is to stop fossil fuel drilling, period. In the midst of a climate emergency, we need to take the actions necessary to stop pollution once and for all," Food & Water Watch Policy Director Jim Walsh said in a statement. "We look forward to working with climate champions in Congress like Rep. Jan Schakowsky to pass the Future Generations Protection Act to ban fracking on public lands and everywhere else."
Some praised the new rules as needed progress, including Sen. Ed Markey (D-Mass.).
America’s public lands should be sources of inspiration and joy, not pollution and waste. I applaud @Interior for working to stop releases of methane, a major climate pollutant, on our public lands—something I've been demanding for years with my FLARE Act. https://t.co/D1o26GEc55
— Ed Markey (@SenMarkey) March 27, 2024
Interior Secretary Deb Haaland said in a statement Tuesday that “this final rule, which updates 40-year-old regulations, furthers the Biden-Harris administration’s goals to prevent [methane] waste, protect our environment and ensure a fair return to American taxpayers.”
Methane can trap far more heat than CO2, so limiting emissions is a critical part of addressing the climate crisis. Despite pledging to cut methane emissions, oil and gas companies have not significantly reduced emissions in recent years. The U.S. is currently the largest emitter of methane from oil and gas in the world.
The International Energy Agency says major reductions in methane emissions need to be made if the world is going to avert catastrophic global warming.
Keep ReadingShow Less
Most Popular