tax revenues

U.S. Multinational Corporations pay more taxes to foreign nations than the United States

A new Standards & Poors report (pdf) gives a terrible tale to tell on U.S. corporations moving offshore.

S&P's bullet point findings:

  1. In 2008 S&P 500 foreign sales increased 8.5%,
    while domestic sales decreased 0.3%
  2. European sales represented 27.7% of foreign sales,
    with 9.3% coming from Canada. Asian sales decreased to 13.2% from 16.8% in 2007.
  3. It’s not just jobs exported - more income taxes were paid abroad than were paid to the U.S. government.
  4. Foreign income taxes increased US $11.5 billion or 9.3%, as U.S. federal income taxes declined US $43.9 billion, or 29.1%.
  5. Half of the issues still do not report sufficient
    information for a complete breakdown – big on pictures, short on tabular tables.
  6. Of the reporting issues, 47.9% of all sales were
    produced and sold outside of the United States, up from 45.8% in 2007 and 43.6% in 2006

about that deficit... IRS Tax Revenues Fall 34%

Beyond our absurd deficit, what is more scary in this story of tax revenues falling 34% from one year ago, is that amount of money is only $138 Billion dollars. That is 34% drop off, which implies last years IRS total revenues were $405 Billion.

Think about $1 trillion. Multiple that by 12 and then see what 34% of our tax revenues in a year is. Last year's tax revenues were $405 billion. That means to just pay off $1 trillion dollars, no interest, just the principle, would have taken 2.5 years and this is before the 34% drop in tax collections. Yet the government committed to $12 trillion total in financial bail out commitments.

Oh yes, the reason IRS revenues have dropped is once again, Americans are broke and we need jobs, jobs, jobs, jobs. So here is yet another factor where everything depends upon employing the U.S. labor force.