It’s not just Walgreens: The absurd measures corporations will take to dodge taxes
The popular "inversion" scam allows American institutions to game the system. It's unethical -- and unpatriotic
This article originally appeared on AlterNet.
How would you react if one of your neighbors announced that while he obviously benefits from having clean water, highways, Medicare, police protection, parks, schools, and other public services, he was no longer going to pay his part of the taxes that make them available?
And what if this neighbor also said he was renouncing his American citizenship to become a citizen of Switzerland, because he could pay less taxes there? Not that he was actually moving to that cold country, mind you — no, no, he’d still be living right here in the good ol’ USA, still benefitting from all those public services that taxpayers like you and I provide.
Surely, you think, this has to be a joke. A person can’t really do this, can they? No, of course a “real” person could not get away with this You see, corporations are funny creatures. For example, they don’t want to pay their share of America’s tax bill, but then they’re first in line demanding subsidies, grants and other special handouts from America’s government to pad their financial bottom line.
That’s hilarious hypocrisy — but it’s no laughing matter, since it means you and I have to pay more to cover their tax avoidance, while also seeing our public money siphoned out of the programs that we need into the pockets of corporate elites, who most often use the funds against the public interest.
Corporate tax dodging has become both rampant and ridiculous. Take an increasingly popular scam called “inversion,” which is nothing but a perversion of tax law, business ethics and common decency. It works like this: By merging with a corporation based in a country with lax tax laws, a U.S. corporation can reincorporate as a citizen of that country and shift its tax obligations there, even though all or most of its profits are made from sales in the U.S-of-A.
For example, Gregory Wasson of Long Grove, Illinois, announced that he has plans for all of the above. Gregory isn’t my neighbor, but he sounds like a “real” person. So how is he getting away with this scam, you ask? While Greg is not personally my neighbor, or yours, the corporation he heads might be. Wasson is CEO of America’s largest drugstore chain, Walgreens Corporation, the sprawling, $72-billion-a-year behemoth that is in all 50 states and has stores in thousands of neighborhoods all across the country.
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