[Antiracism] [Workers' Rights] Wal-Mart evades Mass taxes

[WMass Jobs With Justice]

Greenfield's HYPERLINK "http://www.sprawl-busters.com/"Al Norman on Wal-Mart
tax scam:
 
HYPERLINK
"http://www.huffingtonpost.com/al-norman/walmarts-selfdealing-i_b_80524.html
"http://www.huffingtonpost.com/al-norman/walmarts-selfdealing-i_b_80524.html
(thanks, Leo!)
 
excerpt:

In February of 2007, the Wall Street Journal ran a story revealing that
Wal-Mart pays billions of dollars a year in rent for its stores, but in 25
states - most of them east of the Mississippi - it has been paying most of
that rent to itself, and then deducting that amount from its state taxes. By
so doing, Wal-Mart has avoided paying several hundred million dollars in
state taxes. 
 
...

A number of other states, like Massachusetts, are considering "combined
reporting" tax reform, which requires corporations to report all their
revenues in one state, ending the ability to assign costs to other states
and escape taxation. All related companies would have to file one income tax
return. In Massachusetts, Wal-Mart says it paid nearly $19 million in state
and local taxes in 2006. Assuming roughly $11 million of that was state
income tax, the retailer also avoided $5.4 million by deducting rent it paid
to its Delaware-based REIT as a business expense, lowering its taxable
income. The company also cost taxpayers $7.2 million in health care costs
for 6,000 Wal-Mart workers and dependents on Medicaid. The net result is
that Massachusetts taxpayers actually lost money on the 45 Wal-Mart stores
in their state. Massachusetts Governor Deval Patrick has drafted legislation
that would close Wal-Mart's loophole in the Commonwealth, but the
Massachusetts General Court has not taken up the bill. 
 


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