Open Up Those Corporate Tax Returns, the Public Has the Right to Know by RALPH NADER

[Better Believe It]

November 27, 2008
After $7.6 Trillion in Bailouts, the Public Has the Right to Know
Open Up Those Corporate Tax Returns
By RALPH NADER

It has never been more clear how much corporations depend on We, the People for their very existence. Corporations are given the right to exist through a public charter. For public corporations, shareholders are bestowed with limited liability, and they benefit from a public system of securities regulation that gives investors confidence to invest. In the best of times, corporations benefit both from public goods (public roads and infrastructure, public investment in R&D) and targeted benefits (tax subsidies, loan guarantees, and much more). In the worst of times, as we now see, the largest corporations can expect massive public support. Bloomberg reports that the United States has already committed an amazing $7.76 trillion -- more than half of U.S. GDP -- in funds for bailouts, guarantees, share purchases, insurance programs, swaps and more.

Don't We, the People have the right to expect something in return? How about starting with public release of the income tax returns of all corporations above a certain size (say, $10 million in assets)?

Disclosure of corporate income tax returns would help offset the intentional obscurity and complexity surrounding corporate records that has so directly contributed to the current financial crisis.

It would also lead to much better tax policy. President-elect Obama has stated that he and his administration will carefully review every budget expenditure, in order to save taxpayer dollars and eliminate or curtail programs that have outlived their usefulness or never should have been started. This is a welcome commitment. Aside from cutting wasteful Pentagon spending, however, the really big ways to improve the government's balance sheet are in eliminating unfair, inefficient corporate tax loopholes, and escapes to tax havens abroad.

Please read the entire article at:

http://www.counterpunch.org/nader11272008.html

[msongs]

1. every penny of this corporate welfare scam should be itemized on the internet for viewing nt

[zorahopkins]

2. Not Just Private Corporations, But

Not just private corporations, but also private INDIVIDUALS.

Private individuals with assets (not just income!) of more than $10 million should be forced to open up their income tax forms.

WE, the people, need to see how those bloodsuckers have ripped US all off!

[Warren Stupidity]

3. Seems right to me.

Nader is frequently right on the issues.

[bvar22]

4. K&R

Nader is usually right.
He has been a tireless and effective People's Advocate.
Everyone should listen to Nader and read his books.

No one in a swing state should ever vote for him.


The Democratic Party is a BIG TENT, but there is NO ROOM for those
who advance the agenda of THE RICH (Corporate Owners) at the EXPENSE of LABOR and the POOR.

[Better Believe It]

7. I wish this was true ....

"The Democratic Party is a BIG TENT, but there is NO ROOM for those
who advance the agenda of THE RICH (Corporate Owners) at the EXPENSE of LABOR and the POOR."

[bvar22]

8. It is true in principle, but....

....some Democrats (too many) are without principles.

[laststeamtrain]

5. K & R. But I would like to articulate my opposition to Ralph Nader.

Here goes:

Fuckedyfuckfuckfuckfuck...d'uh...fuckedyfuckfuckfuckfuck...Obama's gettin' a puppy...fuckedyfuckfuckfuckfuck...hey, that dude's an a-rab...fuckedyfuckfuckfuckfuck...get out of here!...fuckedyfuckfuckfuckfuck...you're stooopid, no, you're stooopid...etc.

Feel free to copy/paste this for the inevitable DU dumb-ass pile on.

[robinlynne]

6. But, in this particular case, nader is doing what he does better than most, protecting consumers.

[Pastiche423]

9. Aw, don't let the poster know that

It would kill his Nader hate buzz.

Personally, I agree whole heartedly w/what Nader said.

[nashville_brook]

10. even a broken clock is right twice a day -- hell yeah we have a right to know!

[gravity]

11. They are already required to do so

As long as they are trading on a major stock exchange, they report their financial information including taxes to the public every quarter.

[Hassin Bin Sober]

12. They don't post their returns to show how they arrived at those figures.

The returns would show loopholes.

[gravity]

14. They basically do

They might not have every single detail, but all the major tax policy the company follows is clearly documented. If you know what loopholes to look for, it should be rather easy to find.

[Hassin Bin Sober]

15. I guess we differ on what "basically" means.

A 50 page financial statement doesn't come close to a 7 foot high corporate tax return that contains proprietary tax shelter schemes the corporation had to sign a confidentiality agreement and pay millions in fees to obtain.

I think that is what Nader is talking about.

[gravity]

17. He doesn't know what he is talking about

All you have to do is multiply the companies profits by the tax rates(.35), and see if that number matches up with the taxes paid. You can also look at the cash flows to confirm this.

If there is any discrepancy, you can look through the financial statements and footnotes deduce where it came from. Loopholes aren't illegal, and it will be hidden somewhere in the financial statement. If a company is allowed to pay a lower tax rate, it is usually a positive to report.

It is very unlikely that public companies can commit tax fraud just because their information is public and the IRS will be on their ass. It is usually individuals and private entities that try to take advantage of tax shelters, because they can hide from the IRS easier.

[Better Believe It]

18. Right. And You Do! :) Ya .... What would Nader know about corporations ....

compared to your vast knowledge of Wall Street and big business.

Or did one of Bush's economists advise you on the matter of corporate tax return?

Open up all the corporate financial books and tax returns to public inspection!

[Hassin Bin Sober]

19. Wow. You are a trusting sort.

I'm sorry, but your assertion that a corporation's tax strategy can be ascertained by using simple math on a few lines of a financial is simply ludicrous and doesn't square with reality. The fact that corporations PAY MILLIONS for tax consultants that MAKE THEM SIGN CONFIDENTIALITY AGREEMENTS blows your theory to smithereens.

Sure, loopholes aren't "technically" illegal in some/most cases.........until the IRS catches on to the most abusive schemes and puts a stop to them. The corporations bank on the fact that their returns are so complicated that they bury these loopholes and count on the "big sky small bullet theory" to get away with it.

I'm no fan of Nader but he has a neat idea here. Why not make PUBLIC companies records PUBLIC information on ho they avoid PUBLIC taxes?


Read the book Perfectly Legal or watch this Frontline documentary called Tax Me If You Can:

http://www.pbs.org/wgbh/pages/frontline/shows/tax/

First of all, taxes became for corporations a serious profit center -- the idea of reducing your taxes from a corporate standpoint and a substantial bottom-line effect for their earnings -- and it became a very important part of their process to reduce their taxes in whatever capacity they could accomplish that. …

IRS commissioner, Large and Midsize Business Division (1999-2003); former tax director of Hewlett-Packard




The interesting thing about the corporate tax shelter phenomenon is that they had series of very interesting characteristics. Perhaps the most noteworthy one is that, to skilled tax professionals, it resulted in a result that was too good to be true. If a result was too good to be true, you should be very suspicious about it, because it really meant that the tax system was being abused.

But then there were some other interesting things that made for an interesting story. They were sold by a large firm that came in under a cloak of secrecy. Namely, before they'd even show it to you, you had to sign a confidentiality agreement.

Secondly, they had a humongous amount of fees. They would never sell these deals based on, "This is the hours that we've spent in developing this. We want you to pay for these hours." No, it was a fee that was tied in to the amount of tax savings, and it was a fairly high percentage.

Then, third, they really wanted to manage your dispute resolution process with the IRS. In effect, you could not handle that. You had to communicate to them if the IRS discovered what was going on.

All of these things kind of gave a real sense that this is shadowy transaction, because in normal business transactions, these aren't the elements of what occurs.

[Occulus]

13. Fine. Include their 'books', too.

Even the supersecret R&D. I don't care about their secrets any more.

In fact, I think we should strip all of them of their personhood, relegate all their "rights" to privilege status, and end all political activity on their behalf.

Corporations are not persons, should not be treated like people, and should be subordinate to the will of the people. Period.

[kentuck]

16. Ralph Nader for Attorney General !

We need someone that will fight for the People and will use the Constitution as his weapon of choice. We could do worse.