Verizon: Avoiding Taxes, Squeezing Workers, Raking it In
August 10, 2011
The Verizon strike enters its third day as more than 45,000 employees protest the company’s demand for more than $1 billion in cutbacks to health care, retirement and other benefits.
But the company’s aggressive efforts to win concessions come at a time when it is pulling in billions in profits.
Not only did Verizon make more than $20 billion in profit in the last four years – all while paying no corporate income tax – it used loopholes in the tax code to get a billon dollar refund check from the IRS, says the Center for Tax Justice, a policy think tank, according to the company’s annual report:
Verizon not only paid nothing in corporate income taxes, it actually received nearly $1 billion (the same amount as the concessions they are seeking) in tax benefits from the federal government.
The center finds that if Verizon had paid its corporate tax at the official rate of 35 percent, it would have been enough (more than $11 billion) to prevent cuts to student loan programs made in the recent congressional debt deal.
Verizon is one of most infamous corporate tax cheats, becoming a top target of activists looking to crack down on tax loopholes that let billion dollar companies pay little to nothing in taxes.
Says the Center for Tax Justice:
Given their record on taxes and compensation, it’s hard to believe Verizon will come around to being a good corporate citizen anytime soon, yet unions and the public alike need to keep up the pressure by asking Verizon: Can you hear us now?
Photo used under a creative commons license from Flickr user Photo1