U.S. COMPANIES USING OVERSEAS SUBSIDIARIES TO AVOID TAXES

progressreport.com

U.S. COMPANIES USING OVERSEAS SUBSIDIARIES TO AVOID TAXES: A new study
published in the journal Tax Notes reveals that " American
multinational companies booked a record $149 billion of profits in tax-haven
countries in 2002 (http://www.nytimes.com/2004/09/17/opinion/17fri2.html) ."
American companies have become increasingly adept at setting up
subsidiaries in places with low or no corporate taxes -- places like Ireland,
Bermuda, Luxembourg and Singapore -- to dodge U.S. taxes and increase
their bottom line. According to the study, "the more that American
companies can use foreign subsidiaries to lower taxes, the greater their
incentive to invest and employ staff abroad." The trend is also costing
the treasury "many billions of dollars." Check out Job Tracker
(http://www.workingamerica.org/jobtracker/index.cfm) to find out which
companies are sending jobs overseas.