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Capitalist Crooks

The Capital Times

Most retailers do the same thing, they just are not as big as Wal-Mart so it goes under the radar,” writes David Livingston of Pewaukee. “I used to work for a large Wisconsin grocer. We had all kinds of dummy subsidiaries to take care of the tax problems.

While words like treason or economic terrorism come to mind the technical term is separate reporting. As Ivey points out a few years ago the Wisconsin legislature attempted to address this corporate scam, but today no one wants to touch it.

As Ivey pointed out in another column Wal-Mart only paid 3 million (separate reporting) of 67 million owed (combined reporting). They used the same scam as Anchor Bank and countless retailers throughout Wisconsin. How do these crooks get away without paying their fair share when if we used similar methods we’d be serving time.

Here is a table that shows how the corporate tax scam works. With combined reporting one can not escape owed taxes by simply setting up out of state or off shore accounts.

Even so called Red States like West Virginia have modernized their corporate tax laws. It is inexcusable for a so called progressive state like Wisconsin to lag this far behind. Like many states, West Virginia found income tax revenue falling over 47% during the Bush-Clinton-Bush years. West Virginia is among 17 states (soon to be 20) who use combined reporting to stop corporate tax fraud.

With Combined Reporting Wisconsin would have had a 13% increase in corporate tax collection in 2002. In real dollars that would have been 76 million in 2002 alone and 130 million over the previous decade. In 1979, 10% of all state revenue were corporate taxes, today its less than 4%.

So who are these economic terrorists?

American Greetings Corp.
Budget Rent-a-Car Corp.
Burger King
Dress Barn
Gap, Inc.
Gore Industries
Home Depot USA
Honeywell International, Inc.
J.P. Stevens and Co.
Kimberly Clark Corp.
Kmart Corp.
Lamb Weston, Inc.
Long John Silver’s
McCormick & Co.
Marsh Supermarkets, Inc.
Marsh Village Pantries, Inc.
May Dept. Stores
Payless Shoesource, Inc.
PF Brands, Inc.
Premark FEG Corporation
R. Scientific Products
Radio Shack Corp.
Sherwin Williams
Snap on Tool
Sonoco Products Co.
Stanley Works
Sunglass Hut International, Inc.
Toys R Us
Tyson Foods, Inc.
Urban Outfitters
Yellow Freight System


2 responses to “Capitalist Crooks

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