July 18, 2013

…And I’ll Put the Hypocrisy On My Credit Card

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.