Hrop 2013 04 11 PG06 A
Hrop 2013 04 11 PG06 A
Hrop 2013 04 11 PG06 A
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EDITORIAL
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n March, the Senate get situation compels it; fairpassed a budget resoness and justice demand it. lution. This blueprint During the budget debate, for the scal year that a number of senators joined begins in October me on the Senate floor to represents an important speak about the need to step forward on an issue close tax loopholes. We of great signicance to outlined the preposterous American taxpayers: the contortions that too many need for balanced decit cor-porations and wealthy reduction. individuals employ to avoid An important part of paying taxes, and how those balanced deficit reduction contortions contribute to is reducing the deficit a shift in the tax burden without severely damagfrom corporations and the ing important protections wealthy to middle-class famCARL LEVIN for and investments in ilies and small businesses. American families. One The case for additional way to do that is by ending unjustified revenue and for closing tax loopholes tax loopholes and ending the damage as a source of that revenue is overthey have inflicted on our budget. whelm-ing. Serious deficit reduction The budget summary released by requires more revenue, as everyone Sen. Patty Murray of Washington, from the Simpson-Bowles Commission the chairwoman of the Senate Budget to the Domenici-Rivlin task force to the Committee, decried the sheer magniConcord Coalition to Fix the Debt, has tude of the revenue lost to off-shore tax recognized. abuse, wasteful and inefficient loopFederal revenue remains signifiholes, and other business tax breaks. cantly below its historic average as For many years, as chair-man of a percentage of the gross domestic the Permanent Subcommittee on product of our economy, and that Investigations, I have focused on the revenue is, and under current trends maze of offshore schemes and complex will continue to be, below the levels we gimmicks that are concocted to allow have needed in the recent past to bala privileged few to avoid paying the ance the budget. taxes that they owe. Our subcommittee In particular, the loss of corporate has, on a bipartisan basis, filled voltax revenues is an ongoing cause of ume after volume with damning detail deficits. In 2006, corporate tax revenue on how these schemes work and the made up about 15 percent of all federal damage they cause. revenue. In 2012, it had fallen to 10 Now we are at a moment in history percent. Somebody has to pick up the when we can remove this blight. The slack. In this case it has been average pressures on the federal budget and American families. the threat to economic growth and Why is corporate revenue a shrinkprosperity that they represent require ing share of our treasury even though action. We must close these loopholes. the U.S. corporate tax rate, at 35 The relentless arithmetic of our budpercent, is one of the highest in the
GUEST COLUMN
developed world? It is because the top tax rate doesnt tell the story. While our tax rate at the upper limit is 35 percent on corporations, the average U.S. corporate taxpayers effective tax rate was just 12 percent in 2011, which is the lowest in generations. A recent study by two think tanks found that 30 of our largest corporations with combined profits of more $160 billion paid no income tax, zero, from 2008 to 2010. The Permanent Subcommittee on Investigations outlined in a report last year how three U.S. companies Apple, Google, and Microsoft used offshore gimmicks to avoid taxes on almost $80 billion in profits. But momentum is building to stop these abuses. Earlier this year, Sen. Sheldon Whitehouse of Rhode Island joined me in introducing the Cut Unjustified Tax Loopholes Act. Our bill would help address some of these tax schemes and others, as well. Its a powerful weapon in our deficit-reduction arsenal if we will use it. During the budget debate, Whitehouse and I were joined by Sen. John McCain of Arizona in introducing a bipartisan amendment recognizing the need to close corporate tax loopholes. The Senate approved our amendment, putting the Senate on the record on the need to end offshore tax abuses by large corporations. We cant afford these loopholes. We cant afford the budget deficits they help cause, and we cant afford the damage they do to ordinary families and small businesses. Ill keep working to strengthen the momentum for reforms that end these abuses. Carl Levin is the senior U.S. senator from Michigan.
mists and pundits have lamented that they had not seen Michigans economy in such a downward spiral since the deep Reagan recession of 1982. Now more than 30 years later, again the dominant issue today remains the economy and jobs.
ments of new jobs in the auto sectors, the reality is that we lost jobs in a roaring tsunami and replaced them with tear drops.
Michigan must continue to focus on preparing, retaining and attracting talent something government can actually do. Companies will grow in and come to places where talent is nurtured and concentrated. We must set a goal to make Michigan and America the brain bank of the world, where everyone comes for deposits and withdrawals. This requires a cultural shift away from thinking a high-paying, low-skill factory job is the easy ticket to the middle class. A four-year college degree is not the sole pathway to success. Technical and vocational training can have a big pay off. We have moved from a state where you once could lift for a living to one where more and more of our citizens must think for a living. The Atlantic Magazine got it right when it stated, There isnt a more urgent crisis than putting the longterm jobless back to work. Lets follow Snyders lead and develop our talent and assure we have jobs to offer. Getting Michigan work-ing again will pay big dividends for us all. See: Business Leaders for Michigan report, A New Michigan, The 2013 Report on Michigans Progress in Six Opportunities, was developed in partnership with Anderson Economic Group LLC. The report can be accessed at businessleadersformichigan.com/ research-reports.
Lessons learned?
Over the past several years, econo-
As a friend of mine prepared her taxes last year, she was encouraged to include her foster son on her taxes to receive the tax benefits. When she did, it was discovered that the 2-year-old already had bad credit. Her sons information had been compromised and used by a thief to run up debt. Stealing the identity of a child is an attractive approach for criminals since the victim may not find out until they are much older and applying for credit the first time. It is the time of year most Americans are preparing their taxes. The bad guys know that, and it is a prime time for them to use social engineering tactics to steal information and identities. Just think of the personal information on a tax return, and it is easy to understand why returns are a target. On the first page of a tax form alone, a person lists the name, address, date of birth and social security number of everyone in their family . This personal identifying information is a gold mine for someone looking to steal your identity . Now that Americans are Tom Watkins is a US/China business and educational consultant. He can be able to file their taxes online and get tax forms online, reached at tdwat-kins88@gmail.com.
KRISTEN JUDGE
fake tax websites are popping up. The IRS issued a warning in October 2012 called, Dont Fall for Phony IRS Websites that describes websites that mimic the IRS. The official IRS website is simple to remember: www. irs.gov. Be sure to check that you are on the official site before doing any online transactions. Be informed this tax season to keep from becoming a victim of cyber tax scams. Kristin Judge is the Executive Director of the Trusted Purchasing Alliance, a division of the Center for Internet Security. She can be reached at kristin. judge@cisecurity.org.