Wednesday :: Apr 2, 2014

Rand Paul: Compliment Caterpillar for Tax Avoidance and Corporate Welfare

by Steve

Now lost in the blizzard of news this morning from the Roberts' court latest destruction of our democracy was yesterday's silliness between Carl Levin and Rand Paul about Caterpillar's $2.4 billion in federal tax avoidance through permissible Swiss shelters. Yes, as Levin said it was an outrage. Yes, as Paul said, it was permissible and the tax code should be on trial here.

I agree Senator Paul, so let's put the tax code on trial, and ask you as a likely 2016 presidential candidate why a company with billions in profits since 2000 should be allowed to use schemes like these to avoid paying money needed for defense, homeland security, and other benefits of being an American corporation making money from American operations.

But Paul dangerously went further and said that Caterpillar should be complimented for avoiding taxes and for creating jobs. What he didn't say was that many of those jobs were former union jobs redirected from unionized states to southern "right-to-work" states, yes, like Kentucky.

Worse yet, and left almost totally unsaid yesterday was that at a time when Caterpillar avoided billions in federal taxes and used that money to acquire other companies and shed union jobs, they also managed to shake down states and localities for another $200 million in corporate welfare, money that is taken from state and local tax coffers and schools, roads, and law enforcement.

Does Senator Paul think Caterpillar should be lauded for that as well?

Steve :: 3:06 PM :: Comments (3) :: TrackBack (0) :: Digg It!