Corporations are taking over government

Bethanne Sevcech
Assistant News Editor

The giant of America is not the government — it is the corporations that control America. Government officials have lost the battle in the control over the nation’s money.
Taxes are becoming more frequently abused by corporations. According to the General Accounting Office, during the booming years between 1996 and 2000, only 60 percent of U.S. corporations paid taxes.
One reason why these companies can get away without paying taxes includes a variety of loopholes. These loopholes include tax shelters, credits, and exemptions.
A loophole that has gained popularity in the past decade is that of inverting.
This inversion allows U.S. businesses to move their headquarters to other countries, so taxes are lowered or no taxes are imposed at all.
As it stands, the United States has one of the most complex and highest tax rates for corporations. U.S. global corporations must pay taxes on all its profits, even if the sale is in an entirely different country.
If a company decides to move its headquarters, it will only have to pay the hosting countries taxes. One “haven” of sorts is Bermuda, where corporations have no taxes to pay.
Corporations in the U.S. may think that they have solved their tax problems, but hopefully this is not the end.
With help, the government can better control corporations and shorten the list of loopholes.
As of right now, there are too many ways corporations can short change the government. Regulations of certain tax breaks can better control the amount of corporate taxes being paid.
The nation has hit one of its highest deficits in years. It is time for the government to step up, and get the money they are owed.
The giants of America are on their way out, and taxes are going to be paid.