The Biggest Tax Scam Ever

America’s top corporations are moving businesses overseas in order to dodge billions of dollars in taxes. Top establishments from tech industry giants such as Microsoft to popular fast-food chains like Burger King are all jumping at the opportunity. Over the next decade it’s estimated that this corporate inversion could cost the US government nearly $20 billion in revenue.TaxScamPhoto

Where Is Our Money Going?

From Bermuda, Ireland, Canada, and even the Cayman Islands, over 100 companies have renounced their United States citizenship in order to claim a lower tax rate with foreign governments. Money which could otherwise be paid for public roads, bridges, start up jobs, or even lower the American deficit is being stuffed back into corporate pockets.

What Are Tax Inversions?

Tax inversion is a corporate method of relocating a businesses’ legal residence to a nation with a lower tax rate while retaining its normal places of operations. If these waves of tax inversions continue, they will threaten the American economy. In the last few years the IRS has finally collected more tax receipts before the crash in 2007, but further examination reveals that the numbers aren’t what they should be. Corporations pay less in federal income taxes than a year before The Great Recession.

Conclusion

Two-thirds of the American population believe that larger corporations should be paying a higher amount of taxes. They urge the United States government to close corporate tax loopholes and bring the system to justice. Until Capitol Hill gets involved, the system will continue to be corrupt.

Image credit: JG Tax Group

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    We serve Tukwila, Auburn, Federal Way. We have a few meeting locations. If you are looking for a Redmond CPA firm, get in touch with us! Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.