By Daniel Berger, Americans for Tax Fairness
As you may have heard, McDonalds and Visa teamed up this week to put out a sample budget (see full plan here) to show how the fast food giant’s poorly paid workers can spend their modest incomes effectively.
While Visa is telling lower-income Americans to work 75 hours a week (at the national minimum wage of $7.25 an hour) and find insurance for next to nothing, it is making massive corporate profits – and it is also rapidly increasing overseas cash holdings, by stashing these profits offshore where no U.S. taxes are paid on them.
A report by Citizens for Tax Justice found that Visa Inc. has over $2.6 billion in profits offshore, $700 million of which came from 2012 alone.
As corporations like Visa avoid paying taxes that benefit low-income Americans – like funding early childhood education, food assistance and nutritional programs – they expect people to be working two jobs and 75 hours a week.
Companies like Visa should pay their fair share of taxes, and Congress should close the offshore tax loopholes that allow those companies to evade their responsibility.