How Corporations Are Using Inflation to Take Your Money

May 31, 2022 • Don’t tell me corporations have no choice but to raise prices. Corporate profits are at a 70-year high. Stock buybacks are expected to reach $1,000,000,000,000 this year. News flash: They’re using inflation as cover to squeeze more money out of you.

Screwed by Corporate America

US Crackdown Could Tighten Tax Noose on Multinationals
THE TELEGRAPH: American companies may soon have to adapt to a fiscal regime without frontiers.

President Barack Obama has revealed a protectionist streak. Photo courtesy of The Telegraph
THE world is becoming a chillier place for multinationals, and for the owners of capital.

While President Barack Obama's plan to clamp down on the overseas earnings of US corporations has been billed as an attack on offshore havens, it heralds a deeper change in the way the US companies are taxed worldwide.

American citizens must pay US income tax on every dollar, peso, or yuan they earn, whether or not they set foot on US soil that year. Mr Obama is making the first efforts to extend this principle to companies as well.

At the moment, US multinationals can take tax deductions on overseas earnings, but delay tax on profits forever by reinvesting abroad. They can shuffle money from one subsidiary to another through the "check box" loophole. This is why US companies pay just $16bn (£11bn) a year on $700bn of foreign earnings, a tax rate of 2.3pc.

Mr Obama has a fight on his hands trying to stop it. >>> By Ambrose Evans-Pritchard | Tuesday, May 5, 2009