Campaign for Working Families
Given their close relationship, I urge President Obama to call out Google's tax avoidance practices as he continues making the case for raising taxes on small business owners to ensure that the well-off are paying their "fair share."
It was reported yesterday that Google has transferred about $10 billion to offshore accounts in Bermuda to avoid paying taxes. Where is the outrage?
According to Businessweek, Google's $10 billion amounts to roughly 80% of the company's 2011 pre-tax profits. And get this: "Last year, Google reported a tax rate of just 3.2 percent on the profit it said was earned overseas." Google may be known as a tech company, but it evidently also has some of the world's best lawyers and accountants!
And there's more. We recently told you about the hypocrisy of Costco's CEO Jim Sinegal, another big Obama supporter. Sinegal is saving $4 million in taxes because his company is rushing a special dividend payment before the end of year, when higher tax rates kick in. As it turns out, Costo isn't the only liberally-led company that is rushing to dodge tax hikes.
The Washington Post, which endorsed President Obama, has announced that instead of quarterly dividend payments next year, stockholders will receive all of 2013's dividends paid out in one lump sum on December 27th of this year.
And guess who happens to be one of the Post's biggest shareholders? Warren Buffett's investment company Berkshire Hathaway. As you know, Buffett has been clamoring for years for higher taxes. Presumably he will be donating his windfall to the IRS!