OK-SAFE, Inc. Blog

September 26, 2012

Senate Subcmt Discusses Corporate Offshore Profit Shifting

Filed under: Network — Tags: , , , , , , — oksafeinc @ 10:26 pm

OK-SAFE, Inc. – Since two of the six state questions scheduled to be on Oklahoma’s November 6, 2012 ballot deal with taxes, (SQ 758 and SQ 766 deal with ad valorem tax),  it might be good to get a feel for what is being discussed in D.C. on the issue of corporate tax avoidance issue.

Link to September 20, 2012 Senate Homeland Security and Governmental Affairs Subcommittee on Permanent Investigations meeting on Corporate Offshore Profit Shifting:

http://www.c-span.org/Events/Senate-Subcmte-Discusses-Corporate-Offshore-Profit-Shifting/10737434260-1/

Sen. Carl Levin (D-MI) chairs the hearing; Sen. Tom Coburn (R-OK) appears as (co-chair?).  Coburn’s initial comments include the statement that tax avoidance is not illegal, that this problem has been incentivized by government policies.  He further comments that the committees report is about the symptoms, not the disease, and that the tax code needs to be revamped.  Sen. Levin contended that some corporations are taking advantage of loop holes that are not actually allowed.

Univ. of Michigan Professor of Law Reuven Avi-Yonah provides testimony that touches on the issue of intangibles.  Avi-Yonah’s  testimony begins at roughly minute marker 45:00.

From the C-SPAN description:

“Washington, DC
Thursday, September 20, 2012

The Senate Homeland Security and Governmental Affairs Subcommittee on Permanent Investigations holds a hearing on multinational corporations shifting profits into offshore subsidiaries to avoid paying U.S. taxes.

The hearing examined how these activities are affected by the Internal Revenue Code and other related regulations.

Witnesses include representatives from the Internal Revenue Service, the Financial Accounting Standards Board, multinational corporations and an accounting firm.

Sen. Levin questioned Bill Sample, Microsoft Corporate Vice President for Worldwide Tax on a company that Microsoft owns in Bermuda that has no employees and claims $3 billion in income. Sample separately conceded that it was in Microsoft’s interest to reduce their tax burden and that holding assets in a foreign country serves to reduce the company’s U.S. tax burden.

Sen. Levin (D-MI) will chair the hearing.”

End of C-SPAN description.

July 3, 2012

Letter To Governors – Don’t Build An Exchange!

OK-SAFE, Inc. – This was forwarded by a friend in Idaho.  A few key legislators have signed a letter urging the state Governor’s to reject Obamacare State Exchanges.  Twelve Senators and 61 Legislators have signed the letter already – don’t you think OK Governor Mary Fallin should sign this letter, too?

See below for details and a link to the letter.

DeMint, Bachmann, Jordan Urge Governors to Reject Obamacare State Exchanges.

Twelve Senators, 61 Representatives join them in sending a letter to all 50 governors
(Washington, D.C.) Senator Jim DeMint (SC), Congresswoman Michele Bachmann (MN-06) and Congressman Jim Jordan (OH-04) sent a letter to all 50 governors urging them to oppose the implementation of the state health care exchanges mandated under President Obama’s health care law.  Twelve Senators and 61 Representatives joined them in writing in opposition to these exchanges, which could cost businesses up to $3,000 per employee.
“Now that we know the courts will not save us from this harmful and unsustainable law, we urge all governors to join our fight full repeal by stopping its implementation,” said DeMint. “Americans have loudly rejected this law because it raises costs, lowers quality of care, and hikes taxes. The President’s health care law will not reform anything, but will hurt state budgets, destroy jobs, and reduce patient choices. States should reject these complex and costly exchanges. We cannot build a free market health care system on this flawed structure of centralized government control, we must repeal all of it and start over with commonsense solutions that make health care more affordable and accessible for every American.”
“While Republicans in Congress will continue to push for a full repeal of Obamacare, the states can take immediate action to reject these exchanges that will increase health care costs and add more layers of bureaucratic red tape. I encourage all 50 governors to do what’s best for the American people. They should refuse to implement an exchange and instead work towards common sense solutions that lower costs and return important health care decisions to patients and their doctors,” said Bachmann.

“The harmful impact on jobs is just one of many reasons we remain committed to fully repealing this law. If governors want to raise the cost of hiring people in their states, they should create an Obamacare exchange. If they want more jobs in their state, they should not. It’s that simple,” said Jordan.
The text of the letter is included below, and a list of signers is available here.
Dear Governors:
The Supreme Court has ruled significant parts of the Medicaid expansion of the President’s health care law unconstitutional as well as ruling that the individual mandate violated the Commerce Clause and will therefore be implemented as a punitive tax on the middle class. This presents us with a critical choice: Do we allow this reprehensible law to move forward or do we fully repeal it and start over with commonsense solutions? The American people have made it clear that they want us to throw this law out in its entirety. 
As members of the U.S. Congress, we are dedicated to the full repeal of this government takeover of healthcare and we ask you to join us to oppose its implementation. 
Most importantly, we encourage you to oppose any creation of a state health care exchange mandated under the President’s discredited health care law. 
These expensive, complex, and intrusive exchanges impose a threat to the financial stability of our already-fragile state economies with no certainty of a limit to total enrollment numbers. Resisting the implementation of exchanges is good for hiring and investment. The law’s employer mandate assesses penalties – up to $3,000 per employee – only to businesses who don’t satisfy federally-approved health insurance standards and whose employees receive “premium assistance” through the exchanges.  The clear language of the statute only permits federal premium assistance to citizens of states who create a state-based exchange. However, the IRS recently finalized a regulation that contradicts the law by allowing the federal government to provide premium assistance to citizens in those states that have not created exchanges. The IRS had no authority to finalize

such a regulation. By refusing to create an exchange, you will assist us in Congress to repeal this violation which will help lower the costs of doing business in your state, relative to other states that keep these financially draining exchanges in place.  
State-run exchanges are subject to all of the same coverage mandates and rules as the federally-run exchange. Clearing the hurdles of crafting an exchange that complies with the 600 plus pages of federal exchange regulations will only result in wasted state resources and higher premiums for your constituents.
Implementation of this law is not inevitable and without the unconstitutional individual mandate it is improbable.  Join us in resisting a centralized government approach to health care reform and instead focus on solutions that make health care more affordable and accessible for every American. Let’s work to create a health care system of, for, and by the people, not government or special interests.
Sincerely,
(Signers include Jim DeMint, Michelle Bachmann, Tom Coburn (yes, Coburn), and more.)
Say NO to any insurance exchange in Oklahoma, whether state-based or otherwise.

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