Saturday, May 15, 2010

U.S. Firms Dodge Billions in Taxes by Moving Profits Overseas

As the U.S economy tries to recover, some American businesses are legally dodging billions in taxes by taking advantage of overseas profit transfers. ABC News posted a new article on this questionable tax loophole that is saving U.S. businesses billions of dollars. You can find a snippet of their article below, or read the full post here.

As America struggles with record deficits, tax dodgers apparently are taking billions of dollars out of the country. A new report from the business giant Bloomberg News finds hundreds of companies skirting $60 billion in taxes, and the practice is completely legal.

Thirty million prescriptions were filed last year for the anti-depressant Lexapro, made by the U.S. pharmaceutical company Forest Labs. According to a story in Friday's Bloomberg Businessweek, most of the profits from that drug were transferred overseas, thus avoiding having to pay taxes in the United States.

The news is shocking to Lexapro customers like Tyler Hurst, who buys the drug at a Phoenix pharmacy.

"It does not say, 'The profits of this go outside the country,' anywhere," said Hurst as he looked at the drug bottle. "It is shady."

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