WEST SPRINGFIELD, Mass. (WWLP) – It’s tax filing season, and many Americans are complaining about the federal tax system.
It has nothing to do with how much they owe, but people like Roy Caso of Connecticut say they’re fed up with big businesses getting the biggest tax breaks. “Obviously they have the ability to pay for good advice, so they get terrific advice and are going to find every loophole, where the common person probably isn’t going to be able to do that,” he said.
According to a new Pew Research report, 64% of Americans say they feel like wealthy corporations don’t pay their fair share in taxes.
According to a recent study by USA Today, a handful of profitable corporations didn’t pay any domestic income taxes in 2014. That list includes Goodyear Tire, TE Connectivity, Eaton, Tyco, Masco, Royal Caribbean, Wynn Resorts, Darden restaurants, Level 3, FirstEnergy, and Cabot Oil.
Raising a debate over corporate taxation, and whether tax reduction techniques should be legal. Tax accountants like Andrew Pignatare of Pignatare and Sagan LLC in West Springfield told 22News many companies get away with it by moving overseas. “Corporations go to other countries for cheaper labor. They go there for lower taxes, they make their products there, and then they come back into the United States, and they don’t get taxed,” he said.
‘Offshoring,’ is how companies like Merck Pharmaceuticals drove their tax rates to zero. Other company’s like Goodyear Tire received a $1.8 billion tax credit, despite reported earnings of $687 million before taxes.
Longmeadow resident Robert Minalga said he’s not surprised. “I wouldn’t doubt it one bit. If you have money, you can do anything you want, right? You got lawyers you got whatever,” he said.
Many of the companies with low effective tax rates lost money in 2014.