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Sen. Sanders Introduces Bill to End Offshore Tax Havens

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I don't expect we'll see any Republicans willing to support his legislation, but good for Sen. Sanders for doing this: Senator Introduces Bill To End Huge Corporate Tax Giveaway:

Corporations offshoring profits costs both the federal government and states billions of dollars per year. One of the more egregious giveaways is known as “deferral,” which allows U.S. corporations to avoid paying taxes on overseas profits until they bring that money back to the U.S., giving them every incentive to leave it overseas permanently.

According to the Congressional Budget Office, “The current tax system provides incentives for U.S. firms to locate their production facilities in countries with low taxes as a way to reduce their tax liability at home,” ultimately resulting in compensation for U.S. workers being lower. Sen. Bernie Sanders (I-VT) is introducing a bill today that would end this practice and close several other corporate tax loopholes: [...]

According to the Joint Committee on Taxation, “the provisions in this bill will raise more than $590 billion in revenue over the next decade.”

Due to the proliferation of loopholes, credits, and the use of tax havens, major corporations haven’t paid the full statutory tax rate in 45 years. In 2011, the 12.1 percent effective rate that corporations paid was the lowest in 40 years.

Here's more from Sen. Sanders' site: End Offshore Tax Havens:

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What would a Sunday be without Peggy Noonan around to impart some of her infinite wisdom to the masses on these bobble head shows? Here she is on Meet the Press pretending that Mittens lying like a rug about his tax plan not favoring the rich because he's going to close some mysterious tax loopholes to be named later is something new.

GREGORY: Peggy, I thought it was pointed when he said reelection of President Obama means chronic high unemployment. And yet, there-- there is all the evidence of the underpinnings of this economy being very strong. Is that a credible case he’s making?

NOONAN: Well, you had brought up the point about the underpinnings being strong. I think there is a general Republican point of view that if Mister Obama is reelected, nothing will move forward in Washington, a sort of cold, blanket, heavy on the economy will probably continue. No progress will be made. Taxes on corporations won’t be lowe-- lowered, so we won’t be more competitive. So, I think, that’s what he was referring to. However, I must add that there was a little news there in what Governor Romney said about, well, frankly, at the higher end for more well-off taxpayers. They’re going to lose some of the things they were relying on, like certain loopholes. I thought he might be talking about limits on the mortgage interest rate deduction. He was not clear about it. But it seems to me he was saying, look, we’re trying to be fair here, we’re trying to make it all work. But the-- but-- but don’t demagogue me on the rich get away with everything.

Yeah, how dare anyone "demagogue" poor old Mitt by telling the truth about his business practices, or his offshore tax havens and making people think he might not be a nice guy. The nerve of them!



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Louisiana Gov. Bobby Jindal (R) struggled on Sunday to explain presumptive Republican presidential nominee Mitt Romney's investments outside the United States, including Swiss bank accounts and a corporation in Bermuda.

During an interview with ABC's Terry Moran, Maryland Gov. Martin O'Malley (D) ripped into Romney for betting "against America" with his foreign investments.

"President Obama is not running against the Almighty, he is running against the alternative," O'Malley explained. "And the alternative in this case is Gov. Mitt Romney, who had the 47th worst job-creation rate as governor, and also has a penchant, a talent for offshoring American jobs -- sending them overseas. And also maintaining offshore bank accounts in Bermuda, Swiss bank accounts."

The Maryland governor added: "I've never known of a Swiss bank account to build an American bridge, a Swiss bank account to create American jobs, or Swiss bank accounts to rebuild the levies to protect the people of New Orleans. That's not an economic strategy for moving our country forward."

Moran asked Jindal if it was even fair for voters to consider Romney's investments outside the U.S.

"The bottom line is I'm thrilled Mitt Romney has been successful in the private sector," Jindal demurred.

"Is it OK for voters to consider the money he has put outside of the country in tax havens offshore, in secret Bermuda companies?" Moran pressed. "Does that make sense for voters to consider?"

"I think voters will consider all the distractions put out by the Obama campaign," Jindal quipped. "At the end of the day, this election is about two fundamental choices. It's about President Obama, who wants to continue to spend money we don't have, incurred now a trillion dollar-plus deficit every year he's been president after he promised we'd cut the deficit in half."

But O'Malley quickly disagreed that the Obama campaign was throwing "sand in the eyes of the American voters" to divert attention away from the president's record.

"No, it's not a distraction at all," O'Malley insisted. "The relevance is this, that Gov. Romney can't claim that his state was actually great at creating jobs when he was governor so he's fallen back and said, 'Vote for me, I was a business man, I created jobs.' You want to talk about going the way of Europe? What went the way of Europe were the Swiss bank accounts and the American dollars that Mitt Romney stuffed in that offshore Swiss bank account, jobs that he facilitated companies in moving offshore, out of places like Ohio, out of Pennsylvania and Maryland."

"This is a fundamental disagreement between two different candidates and their vision for our county's future," he continued. "Barack Obama believes enough in our country to be willing to work for it and invest in it. Mitt Romney bets against America. He bet against America when he put his money in Swiss bank accounts and tax havens and shelters and also set up the secret company, the shell company in Bermuda. Which by the way in order to avoid disclosure, he put in his wife's name right before he became governor of Massachusetts."

"These are legitimate questions that a man who is holding himself as wanting to lead our country forward needs to answer."

Obama campaign adviser Robert Gibbs on Sunday called for Romney to release several years of tax returns to prove that he was not dodging tax laws.

"The one thing he could do, Candy, to clear up whether or not he’s done anything illegal, whether he’s shielding his income from taxes in either Bermuda or Switzerland is to do what every other presidential candidate has done, and that’s release a series of years of their own tax returns," Gibbs told CNN's Candy Crowley. "This is a guy whose slogan is ‘Believe in America’ and it should be ‘Business in Bermuda.’ That’s what Mitt Romney is all about."

(h/t: Talking Points Memo)