Tuesday Tax Tradeoff: Modernize Our Infrastructure OR Give Tax Breaks to Send Jobs Overseas
Tuesday, September 10, 2013
By William Rice, Policy Consultant, Americans for Tax Fairness
Run-down classrooms, collapsing bridges, overflowing wastewater — America’s neglected infrastructure is a menace to our health and safety, a heavy drag on our economy, and an insult to our pride as a great nation.
An accelerated program of infrastructure investment in schools, transportation, energy and water would create over 2.6 million new jobs per year over the next five years to put Americans back to work and create an even stronger foundation for growth for decades to come (p. 31). Five-Year Investment: $464 billion
A huge loophole that allows multinational corporations like Apple to dodge billions of dollars in U.S. taxes each year is called “deferral.” It allows these companies to avoid U.S. taxes indefinitely on profits they’ve made overseas — or claim to have made overseas — as long as those profits remain offshore. This encourages companies to shift profits to foreign tax havens, where they are lightly taxed if at all, and promotes moving production and jobs offshore. Ten-Year Tax Break: $606 billion (p 7-9).
Clearly, it’s time to create jobs at home by ending tax breaks for shipping jobs overseas.