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Profit Laundering and Tax Evasion: The Dirty Little Secret of Financial Globalization
- Dissent
- University of Pennsylvania Press
- Volume 52, Number 2, Spring 2005 (whole No. 219)
- pp. 48-54
- 10.1353/dss.2005.0045
- Article
- Additional Information
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The debate about cutting taxes for corporations and the wealthy is a false one. The issue is not whether transnational corporations and the very rich benefit from tax cuts, but that many of them walk away from all taxes. A General Accounting Office report found that between 1996 and 2000, 61 percent of all U.S. companies paid zero federal taxes. They accomplish this primarily through "profit laundering," a phrase that ought to be on the lips of every social critic.