The new September ADP National Employment Report is out today saying that 162,000 new private-sector jobs were created in the U.S. last month. And once again small businesses with less than 50 workers created the most new jobs—81,000.
On another issue, small businesses are making their voices heard on the issue of big corporations and the wealthy using offshore tax havens to avoid paying U.S. taxes. This means that the rest of us, including every real small business in this country, are subsidizing the government services (courts, defense, infrastructure, first responders, etc.) that the multinational corporations and the millionaire/billionaire crowd are using but don’t want to pay for.
These “moochers” also are depriving the federal government of resources we need to invest in growing our economy as discussed in the story below.
October 3, 2012
Microsoft (MSFT, Fortune 500) avoided paying nearly $7 billion by transferring almost half of its U.S. revenue to a subsidiary in Puerto Rico and moving patents to foreign subsidiaries.
Small business owners say they can’t offshore profits and take advantage of these opportunities. The strategies require a worldwide presence and are either too complex or too costly.
“This tax money goes to support the infrastructure that allows our businesses to be successful,” said Joseph Rotella, owner of Spencer Organ, an instrument repair company in Waltham, Massachusetts.
“These big companies avoid paying their fair share,” Rotella said, noting that highly profitable firms rarely pay the actual top federal rate of 35%.
To hotel owner Sue Edgington, whose Adventure Innis located deep in the woods of northeast Minnesota, the issue of paying taxes is one of patriotism. Like most small business owners, she’s fiscally conservative and doesn’t gladly fork over more in taxes. However, she said that when companies avoiding paying them, it threatens funding to public colleges like the one she attended — and protection of wildlife like the kind that draws tourists her way.
Her frustration could be directed at several of the nation’s top companies. Recent financial data reviewed by the Senate panel showed how tech companies Apple (AAPL, Fortune 500), Cisco (CSCO, Fortune 500) and Dell (DELL, Fortune 500), as well as others like American staples Johnson & Johnson (JNJ, Fortune 500), Coca-Cola (CCE, Fortune 500) and Wal-Mart (WMT, Fortune 500) all keep anywhere from 67% to 100% of their cash as “foreign cash.”
Scott Klinger, tax policy director for the group’s partner, Business for Shared Prosperity, said the bill would help the United States raise $1 trillion over a decade.