Federal government Quote by Jonathan Taplin
““But Amazon is not alone in its avoidance of taxes. Bloomberg Businessweek reports, “The tactics of Google and Facebook depend on ‘transfer pricing,’ paper transactions among corporate subsidiaries that allow for allocating income to tax havens while attributing expenses to higher-tax countries. Such income shifting costs the U.S. government as much as $60 billion in annual revenue, according to Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon.” At a time when both local and federal governments are putting off needed infrastructure improvements because of tax revenue shortfalls, the tax avoidance schemes of our richest technology companies are partially to blame.””
About This Quote
Source Article: The New York Times, “Tech Tax Avoidance” by Jonathan Taplin, 2023
Highlights how major tech firms use transfer pricing to shift profits, causing massive tax revenue loss for the U.S.
In simple terms: Tech companies shift profits to avoid taxes, costing billions.
Key Takeaway
Advocate for fair corporate tax policies.
Themes
tax policy
corporate ethics
government finance
Mood
critical
concerned
Type
analytical
informative
When to use this quote
- policy reform
- public advocacy
- financial journalism
- educational campaigns
Key Concepts
transfer pricing
tax havens
public revenue
Questions to Reflect On
- What reforms could close loopholes?
- How can citizens demand corporate accountability?
A Different Perspective
Complex global tax laws make enforcement difficult.
![“[High income tax rates] not only check consumption but discourage investment and encourage...the avoidance of taxes [rather] than the production of goods.[...]Our present tax system...reduces the financial incentives for personal effort, investment, and risk-taking.” quote by John F. Kennedy](https://sms4smile.com/quotes/img-quotes/d3c/john-f-kennedy-246_avoidance_high-income-tax-rates-not-only-check-con_1252162.jpg)
![“[States and the Federal government are] coordinate departments of one simple and integral whole... The one is the domestic, the other the foreign branch of the same government.” quote by Thomas Jefferson](https://sms4smile.com/quotes/img-quotes/401/thomas-jefferson-43_branches_states-and-the-federal-government-are-co_2619.jpg)
