Businesses should compete based on the quality of their products and services, not on the cleverness of their tax attorneys. Yet many large corporations abuse off-shore loopholes to shrink their tax bill, forcing small businesses — like the manufacturing equipment business firm my husband and I run — to pick up the tab through paying higher taxes or dealing with a decline in the public infrastructure and services that help businesses thrive.
At least 82 of America’s top 100 publicly traded companies shift profits to subsidiaries in offshore tax havens like the Cayman Islands. Some of these “subsidiaries” are nothing more than P.O. boxes.
In fact, there is a single building in the Cayman Islands that is home to 18,857 registered corporations. Companies that make profits in America benefit from our roads, education system, and security. They should, therefore, pay taxes to support those benefits like the rest of us — plain and simple.
At Blockwise Engineering, we don’t have an army of high-priced tax lawyers to abuse these loopholes, so we have to compete on an uneven playing field. No one enjoys paying taxes, but crumbling infrastructure and a subpar educational system is even worse. And no one — least of all a giant, profitable multinational — should get a free ride.