Many American multinationals are aggressively moving their profits out of the United States. A report by Oxfam, Public Services International and the Tax Justice Network concludes that American companies moved between five hundred billion and seven hundred billion dollars in profits to nations with low or no corporate tax rates in twenty twelve alone.
Tax avoidance on such a large scale means that the U.S. accounts for about seventy one percent of global corporate profits that go missing from the country in which they are generated. For instance, the report claims that U.S. multinationals register only zero point three percent of their sales, but more than three percent of their gross profits in Bermuda, which does not tax corporate income. American companies are not the only ones seeking to reduce their tax bills.
The Organization for Economic Cooperation and Development estimates that companies legally avoid paying between one hundred billion and two hundred forty billion dollars in taxes each year. As reported by CNNMoney, the organization has been working for two years on steps nations can take to modernize tax laws so they can help bring that number down.
