How To Cut The Deficit? Cut Into Corporate Welfare
The Article: Ending Corporate Tax Dodging Would Cut Deficit By Twice As Much As Hiking Medicare Age by Zaid Jilani in The Contributor.
The Text: Some right-wing politicians want to raise the Medicare age to 67. This would reduce the deficit by $5.7 billion each year but pass on costs to seniors of $11.4 billion every year.
Rather than making health care more expensive for seniors, here’s a progressive deficit reduction idea. Earlier this month, the Congressional Budget Office said we could raise $114 billion over ten years — twice as much as raising the Medicare age — by limiting corporate tax deferrals.
The way to do this would be to subject all income earned by foreign subsidiaries of U.S. corporations to U.S. tax laws by limiting or eliminating deferrals for overseas profits. Right now, large corporations like Microsoft will shift their profits to overseas locations — such as remote islands in the Caribbean or Switzerland — to avoid paying taxes on them.
