Transit Union calls on Obama to issue executive order to cease federal contracts with these companies
Washington, DC – US companies sheltering profits overseas are betraying their country and the American people says the Amalgamated Transit Union (ATU) in calling on President Obama to issue an executive order for the government to cease federal contracts with these companies.
The call comes in response to a Bloomberg report finding multinational companies, including huge federal and defense contractors, have stockpiled $1.95 trillion outside the U.S. to effectively shelter these earnings tax free, according to securities filings from 307 corporations. Microsoft, Apple Inc. and IBM brought in $37.5 billion in overseas profits.
Under current tax code U.S. companies don’t have to pay taxes on foreign income from business abroad until they bring the money home, creating the incentive to leave profits offshore.
“The hypocritical CEO’s of corporate America are storing cash in overseas vaults for their shareholders, but not for the American public who are seeing their infrastructure fall apart, their children lose SNAP benefits and unemployed family and friends lose unemployment benefits,” said ATU International President Larry Hanley. “US troops are making sacrifices every day to protect our freedoms while these Benedict Arnold like corporate leaders are engaging in acts which betray our country.”
These US companies are using sheltered profits to invest in these foreign countries to create even more profit abroad, shifting potential American jobs and much-needed investment in the U.S. economy.
“These companies receive all the benefits and protections – embassies and military presence - of being an American company, but don’t want to contribute to funding these protections,” Hanley continued. “As our government deals with the never-ending debt crisis, our economy continues to struggle, and many Americans remain jobless, these companies rack in billions abroad, but refuse to invest in the U.S.”
ATU is calling on President Obama to issue an executive order for the U.S. government and federal agencies to cease federal contracts with these companies.
“Our government uses or threatens sanctions against foreign governments – Russia and Iran - to protect the interests of these corporations around the globe. It’s time we held the corporations we protect accountable to the American people,” Hanley continued.