The State’s Tax Code Allows Companies That Make Money, But Lose Money, to Keep Their Cash in Their Home State

Editorial: Learning loss is bad everywhere, and demands immediate action. On Monday, Dec. 10, I learned that our state’s tax code encourages companies that make money, but lose money, to keep their cash overseas….

The State’s Tax Code Allows Companies That Make Money, But Lose Money, to Keep Their Cash in Their Home State

Editorial: Learning loss is bad everywhere, and demands immediate action.

On Monday, Dec. 10, I learned that our state’s tax code encourages companies that make money, but lose money, to keep their cash overseas. While corporations have spent millions lobbying to change tax laws to shield profits overseas, a state law allows them to keep their cash in their home-state without paying taxes in any state. The legislature passed the law, and Gov. Bobby Jindal signed it into law without making any changes to help balance our state government’s books.

Losses are everywhere, and lawmakers have the responsibility to act by making changes to improve taxpayer morale. Unfortunately, Gov. Jindal and the legislature have done nothing to make companies that are making good profits now pay taxes by lowering their tax burden in their home state. When these companies invest overseas, they make money while they’re there.

Last year, U.S. companies that lost money in the financial crisis paid $2.8 billion in taxes to the U.S. government. That’s only 1.3 percent of the U.S. corporate tax revenue of $1.2 trillion from that year. What’s more, a company is only required to pay 2 percent of its profits in taxes, so the U.S. government lost $2.2 billion on tax revenue.

In fact, if the U.S. government had its tax income back in 2008, when it made its massive bailouts in the financial crisis, the combined federal and state tax revenue would have been $3.5 trillion, about $7.2 billion less than it was in 2008.

I was a business owner myself when the financial crisis began. The business community was devastated by the economic collapse, but they soon began to recover, thanks to the government’s bailout efforts. As a government official, I understood the importance of making sure our state government was funded and kept our state property in the nation’s safety net.

However, when it came time to address our state deficit, our governor and his colleagues took a different path.

I’ve been in private business for 20 years and have watched over the last few years as businesses

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