Will Google Get an Amnesty for Shifting Its Profits to Offshore Tax Havens?

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Corporate lobbyists are once again asking Congress and the Obama administration for a tax amnesty for "repatriated" offshore profits. U.S. corporations that shifted profits offshore would get to bring that money back to the U.S. without paying the corporate income tax at the normal statutory rate of 35 percent but rather at a special rate of just 5.25 percent. CTJ released a report addresssing this proposal the last time it was considered in Congress, in early 2009, noting evidence that the last repatriation amnesty did not lead to greater domestic investment or job creation and that repeated amnesties will only encourage corporations to shift profits offshore.

If you want an example of the sort of corporation that would benefit from an amnesty for repatriated offshore profits, look no further than Google, the search engine giant that saved itself $3.1 billion over three years by using accounting gimmicks and transactions that exist only on paper to to shift its profits first to Ireland, then to the Netherlands and finally to no-tax Bermuda.

Read CTJ's report: Will Congress Make Itself a Doormat for Corporations that Avoid U.S. Taxes?

Read the Bloomberg article: Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes

Thank you for visiting Tax Justice Blog. CTJ and ITEP staff will soon retire this domain. But ITEP staff are still blogging! You can find the same level of insight and analysis and select Tax Justice Blog archives at our new blog, http://www.justtaxesblog.org/

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