Corporate Tax Reform Shouldn't Be Revenue-Neutral, Greenlining Says

Fair Tax System Could Cut Deficit Without Hurting Poor, Working Class.

Courtesy: danieljmitchell.wordpress.com

(BERKLEY, CA) - While President Obama deserves credit for proposing corporate tax reform, such reforms should not be revenue-neutral, policy experts at The Greenlining Institute said today. Greenlining’s 2011 report, “Corporate America Untaxed: Tax Avoidance on the Rise” described increasing use of offshore corporate tax havens costing the Treasury at least $60 billion a year in lost revenues.

“We applaud the president for proposing to close loopholes and address profits hidden offshore, but corporate tax reform must not be revenue-neutral,” said report co-author Samuel S. Kang, Greenlining’s general counsel.

“We’re hearing continued calls to slash vital assistance to poor and elderly Americans in order to cut the deficit, even as we let billions in revenues slip through our fingers through offshore tax havens. It’s urgent to close these loopholes now and level the playing field for small businesses, before cutting corporate tax rates for Fortune 500 companies. We can protect vital services, stimulate job creation and cut the deficit if we do this right.”

Greenlining is currently working on a sequel to ”Corporate America Untaxed,” focusing mainly on the tech sector and due for release in mid-April.

The previous version found that use of offshore tax havens by highly profitable corporations such as General Electric and Google had increased while the share of the federal budget funded by corporate taxes had dropped by nearly two-thirds since the 1940s.

Source: THE GREENLINING INSTITUTE, a Multi-Ethnic Public Policy, Research and Advocacy Institute