Elizabeth Warren writes that Europe forcing Apple to pay back taxes is a good thing
The senator says it is a big opportunity for corporate tax reform in the United States.
Elizabeth Warren says the European Union ruling that Apple owes $14.5 billion in unpaid taxes is “big.”
And the United States should “seize this moment,” Warren wrote in a New York Times op-ed Thursday.
In case you missed it, the European Commission ruled last week that Apple owed Ireland the hefty record sum—10 years worth of back taxes—after it found the tech giant illegally paid less than 1 percent in taxes on its European profits.
The crackdown, Warren wrote, is another step in an international effort to end such deals allowing “corporate tax dodgers” to partake in “cross-border games.” But the Massachusetts senator said it’s also a potentially important within American borders.
“Now that other leading countries are starting to get tough on tax enforcement, these tax dodgers suddenly want to move their money back to the United States,” Warren wrote. “When they do, they should pay their fair share.”
Warren proposed three tax reform measures Congress should move to enact.
First, she said Congress should increase taxes on big corporations like Google and Apple, noting that such companies relied on federal investment to get their start. Second, Warren said Congress should not allow companies to pay lower tax rates on revenue generated abroad, because she said it encourages the outsourcing of jobs. And lastly, she said lawmakers should ensure that small businesses are not shouldering a disproportionate tax burden.
“Small companies in Massachusetts don’t stash profits in the Netherlands,” Warren wrote. “They can’t hire a team of accountants … to slash their taxes.”
Warren likely isn’t holding her breath for these measures, as both legislative chambers are currently controlled by Republicans and as most congressional action pauses for presidential campaign politics.
Democratic presidential nominee Hillary Clinton has proposed a similar slate of proposals when it comes to approaching corporate tax avoidance. Earlier this summer, Clinton said she would work to end tax loopholes that reward companies for shifting earning abroad by imposing an “exit tax” on such companies.
Similar to Warren, Clinton argued that these proposals would allow small businesses to compete.
On the other side, Republican nominee Donald Trump said in a speech last month that he would lower domestic corporate tax rates, which he says punishes companies for operating in America.
However, Warren said that “common refrain” among opponents of her proposals gets increasingly weaker as other nations “step up,” as was the case with Apple in Europe.
“We have the leverage to tighten our tax code because these companies want what America offers: the world’s wealthiest consumers, the world’s best work force, the world’s most reliable legal system and the world’s deepest capital markets,” the senator wrote.
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