And third, this is a crime that could be tackled and politicians are choosing not to do so and impose cuts instead.
So, what is it?
Even as American corporations are raking in record profits, the largest among them are shifting larger amounts of money away from the United States and into offshore tax havens that allow them to pad their bottom lines even more, according to multiple analyses of legal filings made since the beginning of 2013.
The Wall Street Journal found that the 60 largest companies moved $166 billion offshore in 2012, shielding 40 percent of their earnings from American taxes and costing the U.S. billions in lost revenue.
When you read the underlying WSJ story you find:
U.S. companies are making record profits. And more of the money is staying offshore, and lightly taxed.
A Wall Street Journal analysis of 60 big U.S. companies found that, together, they parked a total of $166 billion offshore last year. That shielded more than 40% of their annual profits from U.S. taxes, though it left the money off-limits for paying dividends, buying back shares or making investments in the U.S.
Oh. They\’re not moving money out of the US to park it in tax havens. Rather, they\’re just not moving their foreign profits into the US. As US tax law insists they can do entirely legally. As EU law let\’s UK companies do as the Vodafone case showed as well.
It\’s not just that he\’s got it wrong. It\’s that he\’s describing obeying the law as a crime.