We stand up for a Massachusetts where everyone gets a fair shot, does and pays their fair share, and plays by the same rules.
Massachusetts Fair Share is releasing a new report today, authored by the Center for Effective Government looking into the impact of corporate tax rates on jobs.
It has been said that the only sure things in life are death and taxes, but for many large corporations, only the former is true. Corporations move profits into tax shelters overseas and have all sorts of other tricks to keep their profits out of the IRS’ hands.
But corporations and their lobbyists are falsely warning that tax reform could lead to job loss, and even argue that their taxes should be lowered in order to create jobs.
The report, “The Corporate Tax Rate Debate,” examined the tax rates paid and jobs created by 60 large, profitable corporations. The companies were not cherry-picked. Rather, they came from a larger group of 280 corporations and CEG examined the 30 companies that paid the highest effective tax rate and the 30 companies that paid the lowest effective tax rate. The analysis found that the 30 companies that paid the highest tax rates added nearly 200,000 jobs over a five-year period. Those companies that paid little or no taxes (and in many cases received large refunds) shed about 51,000 jobs during that same period.
The 30 highest taxed corporations (all over 33%) included well known names such as Whole Foods, Lowes and Best Buy. Only 8 of the 30 firms in the high tax group shed workers over the three years, and together they created close to 200,000 jobs.
The 30 corporations with the lowest tax rates included well known firms such as GE, Boeing, Verizon and DuPont, and only half of those 30 added jobs between 2008 and 2012. Collectively these 30 shed 51,289 jobs between 2008 and 2012 and only two of the firms paid any federal income taxes during the three year period. Interestingly those two together created 2,750 jobs and still reported combined profits of $4.5 billion.
Already, these tax loopholes are fundamentally unfair — they reward huge multinational corporations and put small business at a disadvantage. Now we learn that not only are they skipping the check, the worst offending companies are laying off more workers. Why are we as taxpayers subsidizing that?
At the state and federal level we’ve seen how much power industry brings to bear when it comes to tax rates, and how everybody scrambles when they say “job losses.” I think we need to put that question to bed.
America should work for everyone. We shouldn’t build our budget on the baseless warnings of self-serving industry lobbyists, we should build our budget on our values: Everyone should get a fair shot at a decent job and a secure future, and everyone should pay their fair share. No one should be allowed to cheat the system. We should eliminate these counter-productive tax breaks and use that money to rebuild the economy, invest in education and expand opportunity.