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Caterpillar avoided $2.4B in U.S. taxes, Senate report says

  • Caterpillar (CAT) -1% AH after a new report from Sen. Carl Levin, chairman of the U.S. Senate Permanent Subcommittee on Investigation, says the company has avoided paying $2.4B in taxes by shifting billions of dollars in profits to a wholly owned Swiss affiliate.
  • The report concludes CAT shifted $8B in profits from its parts manufacturing division in the U.S. to Switzerland; CAT negotiated a tax rate of 4%-6% with Switzerland, whose federal statutory tax rate is typically 8.5%.
  • Levin says CAT is a prime example of a tax-avoidance strategy that costs the U.S. billions of dollars every year, although the subcommittee does not have the authority to conclude whether CAT broke any tax laws.
  • The committee will begin hearings on CAT's offshore tax strategies tomorrow.
Comments (15)
  • kcr357
    , contributor
    Comments (557) | Send Message
     
    "Levin says CAT is a prime example of a tax-avoidance strategy that costs the U.S. billions of dollars every year"
    Well no shit... A company is trying to minimize their tax burden?! I feel really dumb adjusting my investments and spending every year to maximize my tax burden and not "cost" the gov. money by keeping as much of my money as possible. Next you're going to tell me tax preparers like H&R block help people minimize their taxes as well.
    31 Mar, 05:31 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4435) | Send Message
     
    This committee will now waste more time & money , investigating a situation where tax avoidance is perfectly legal

     

    instead of looking into lowering the largest corp tax rate in the free world, which would promote more growth here in the U.S. and thus increasing the gov't tax coffers thru growth and expansion.. Economics 101
    31 Mar, 05:35 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3311) | Send Message
     
    If Levin does not like the rules, perhaps he should work to change it, rather than complain about it.

     

    Even more absurd, guys like him made the rules he's complaining about.
    31 Mar, 05:40 PM Reply Like
  • SoldHigh
    , contributor
    Comments (995) | Send Message
     
    Incompetent politicians create an impossibly complex tax code then whine when companies work hard toward minimizing their tax liability. Ignorant politicians need only look in the mirror if they want someone to blame for this.
    31 Mar, 05:48 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3311) | Send Message
     
    They are not ignorant, they know exactly how to get what they want, and buy votes on MSNBC from the sheeple with OPM
    31 Mar, 05:51 PM Reply Like
  • User 13532172
    , contributor
    Comment (1) | Send Message
     
    Good for Cat, keeps my stock up and pension coming.

     

    This guy is attacking a company that has historically helped our balance of payments in a positive way.

     

    Right now they are bringing back work from Japan with a new facility being built in Georgia. I wonder if he has considered the dollars spent here on wages for American workers or the suppliers here that also employ people because of the business they have with Cat.

     

    This is a hard goods company, not some phantom company or individual set up to hide their wealth.

     

    Buckaroo
    31 Mar, 06:08 PM Reply Like
  • B.D.
    , contributor
    Comments (2) | Send Message
     
    Uh-huh, well, I pay my taxes and expect them to do that as well without any shenanigans. Legal or not, shuttling money to a faked up entity benefits neither their shareholders or any of the governments that protect them. All it does is bottle it up and benefits someone else. They exist under the umbrella the U.S. provides for them. Without that they wouldn't exist. Rather than game the system I would prefer they use their funds to convince the rest of use what change is needed which will make it profitable for them to benefit the U.S. After all, turning the States into serfdoms isn't likely to grow anyone.
    1 Apr, 10:05 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3311) | Send Message
     
    BD,

     

    You say you pay your taxes, but do you pay more than you are legally required to?

     

    Why should they not "game the system," being it was not created by them anyway?
    1 Apr, 10:11 AM Reply Like
  • GTHSR
    , contributor
    Comments (2) | Send Message
     
    If CAT avoided taxes without breaking any tax laws, ins't this what they're supposed to do??? Wouldn't they be called to explain to their stockholders if they did not do all that is legally possible to maximize profitability of the company???

     

    What's happening here?
    31 Mar, 06:08 PM Reply Like
  • Tbird1
    , contributor
    Comments (15) | Send Message
     
    Levin should be the Poster Child for Term Limits.
    31 Mar, 06:32 PM Reply Like
  • skipmac
    , contributor
    Comments (38) | Send Message
     
    What ever happened to Blind Trusts that Ferrell employees such as cabinet members and congress people and senators used to subject to. They bitch and moan about companies trying to maximize profits using the loopholes they let slide by, but are multimillionaires themselves trading on inside information they receive from the people they support, not the people they represent. Two primary examples, Harry Reid and the lovely Nancy Pelosi. Between the two of them they couldn't find their back pocket to get a quarter if they were in a telephone booth.
    31 Mar, 10:01 PM Reply Like
  • GTHSR
    , contributor
    Comments (2) | Send Message
     
    If CAT avoided taxes without breaking any tax laws, Isn't this what they are supposed to do??? Wouldn't they have to answer to stockholders if they did not do all that can be legally done to maximize profitability??

     

    What's happening here?
    31 Mar, 10:01 PM Reply Like
  • PeteCal
    , contributor
    Comments (90) | Send Message
     
    I always say a good tax guy can outsmart the entire congress with half his brain tied behind his back.
    1 Apr, 08:58 AM Reply Like
  • CapGoodsAlpha
    , contributor
    Comments (40) | Send Message
     
    $CAT - hardly a company with the lowest corporate tax rate. I would surmise they ticked somebody off politically.
    2 Apr, 08:57 AM Reply Like
  • 15320962
    , contributor
    Comment (1) | Send Message
     
    This only reminds us what our President Obama the liar did when he bought his house in Chicago (Look It up), or how about the Clintons with their White water scams and the Rose law firm. This is nothing more then a bunch of liberals going after a good conservative company. Just look at what they tried to do with Wal-Mart. Any body out there knows of any good liberal companies that produce any real jobs? The conservative companies keep this country going, not the Democrat/ socialist. They just want your money, then put you on their social programs to buy you off and keep you down. Thank God we have Caterpillar helping to keep this country going.
    3 Apr, 03:26 AM Reply Like
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