Quantcast
Connect with us

Wal-Mart hides $76 billion in overseas tax havens while taxpayers help feed low-wage workers: study

Published

on

Wal-Mart Stores Inc. was able to avoid paying $3.5 billion in taxes last year by owning $76 billion of its assets in overseas tax havens, a study found this week.

United Food & Commercial Workers International Union research published by Americans for Tax Fairness on Wednesday showed that Wal-Mart had created more than 78 offshore subsidiaries and branches since 2009 that the company had not disclosed in U.S. securities filings, Bloomberg reported.

ADVERTISEMENT

According to the study, 90 percent of the overseas assets owned by Wal-Mart were through two of the most popular tax havens in the world, Luxembourg and the Netherlands.

Although the company has no stores in Luxembourg, it reported $1.3 billion profits in the country between 2010 and 2013, which were taxed at a rate of less than 1 percent.

“This report is continuing evidence that everybody has been engaging in cross-border tax avoidance,” Harvard Law School professor Stephen E. Shay told Bloomberg.

Wal-Mart officials testified before Congress in 2011 in favor of a law that would exempt companies from paying taxes on profits earned overseas. Since 2008, the company’s overseas earnings have more than doubled from $10.7 billion to $23.3 billion.

ADVERTISEMENT

Wal-Mart spokesperson Stephen E. Shay called the report misleading, and pointed out that the company already paid $6.2 billion in U.S. taxes in 2014 or “nearly 2 percent of all corporate income tax collected by the U.S. Treasury.”

A study from the University of California Berkeley Labor Center found earlier this year that poverty-level wages paid by companies like Wal-Mart were costing U.S. taxpayers $153 billion a year.

“When companies pay too little for workers to provide for their families, workers rely on public assistance programs to meet their basic needs,” report co-author Ken Jacobs explained at the time. “This creates significant cost to the states.”

ADVERTISEMENT

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and legal efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. And unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from billionaires and corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you. Click to donate by check.

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



Report typos and corrections to: [email protected]. Send news tips to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Trump responds to China raising tariffs — by raising tariffs on over half a trillion dollars in Chinese goods

Published

on

After US markets tanked on Friday, President Donald Trump dramatically escalated his trade war with China.

"For many years China (and many other countries) has been taking advantage of the United States on trade, intellectual property theft, and much more. Our country has been losing hundreds of billions of dollars a year to China, with no end in sight," Trump tweeted.

"Sadly, past Administrations have allowed China to get so far ahead of fair and balanced trade that it has become a great burden to the American taxpayer. As President, I can no longer allow this to happen," he argued.

Continue Reading

Breaking Banner

MSNBC anchor blasts Trump’s ‘lunacy’ after ‘a Twitter tirade that sent the Dow spiraling’

Published

on

The New York Stock Exchange closed down over 600 points on Friday as President Donald Trump's trade war with China escalated.

MSNBC anchor John Heilemann said, "we’re hours away for the president taking off to the G7 summit in Bairritz, France, where allies are bracing for the Trump-fueled mayhem that is now 100% certain to ensue, with Trump like a drunken traveler in the departure lounge about to take a trip that he dreads, already sewing global chaos, days-long public meltdown typically moved from words to actions."

"Donald Trump beginning this day with a Twitter tirade that sent the Dow spiraling, closing down more than 600 points today and escalating his trade war with China with these norm-shattering, power-abusing words in this tweet," he said, putting the tweet on-screen.

Continue Reading
 

Breaking Banner

‘Making things worse’: National Farmer’s Union chief unloads on Trump in blistering statement on trade war

Published

on

Roger Johnson, the president of the National Farmers Union, delivered a blistering rebuke to President Donald Trump after he responded to new tariffs from China by issuing a purported "order" telling American companies to look for alternative places to manufacture their goods.

In an official statement, Johnson pointed out that farmers so far have felt the brunt of the president's trade war, as China has slapped heavy tariffs on key agricultural products such as soybeans.

He also crushed the president for failing to make any progress on reopening the Chinese market to American goods.

Continue Reading
 
 

Thank you for whitelisting Raw Story!

As a special thank you, from now until August 31st, we're offering you a discounted rate of $5.99/month to subscribe and get ad-free access. We're honored to have you as a reader. Thank you. :) —Elias, Membership Coordinator
LEARN MORE
close-link
close-image