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Monday, January 5, 2015

Cheating the Schoolkids

An Apple executive recently said, "The U.S. has stopped producing people with the skills we need." 

''It's hard for a nation to build work skills when its corporations, the beneficiaries of a half-century of public support, have largely stopped paying for education. Most of the attention to corporate tax avoidance is directed at the nonpayment of federal taxes. But state taxes, which to a much greater extent fund K-12 education, are avoided at a stunning rate by America's biggest companies. As a result, public school funding continues to be cut, and the worsening performance of neglected schools adds fuel to the reckless demands for privatization. Inner-city schools are being devastated by this insidious process.
A 2011 report by Citizens for Tax Justice (CTJ) showed that corporations pay less than half of their required state taxes, which in addition to K-12 educational funding provide a significant part of pension funding. More recently, the reportThe Disappearing Corporate Tax Base found that the percentage of corporate profits paid as state income taxes has dropped from 7 percent in 1980 to about 3 percent today. It may be getting worse. A PayUpNow analysis of 25 of our nation's largest corporations shows a total state tax payment of 2.4%, about a third of the required tax, based on the average maximum state tax rate of 7.3%. Among them were: 
Boeing, which paid zero federal taxes last year, and about 1/50 of its required state taxes.
Caterpillar, which paid less than a quarter of its tax bill after recently threatening to leave Illinois. Rand Paul said Caterpillar should get "an award" for saving money.
Verizon, which paid about one-tenth of its required tax. A company spokesman recently said, "Verizon fully complies with all tax laws and pays its fair share of taxes."•Google, which paid less than a quarter of its state tax bill. Referring to tax havens, Google Chairman Eric Schmidt said, "I am very proud of the structure that we set up." ''
 http://www.commondreams.org/views/2015/01/05/cheating-schoolkids-corporations-dont-pay-their-state-taxes-either