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."

ABA Accredits 199th and 200th Law Schools

Earlier in the week, the American Bar Association (ABA) granted provisional accreditation to Charlotte School of Law and Elon University School of Law. These two additions bring ABA’s total number of accredited law schools to 200, which is exciting for anyone in the field of law. To see their full list of accredited law schools check out ABAnet.org.

Largest Tax Fraud Case Ever Thrown Out

Earlier today a federal judge tossed out indictments against 13 former KPMG executives yesterday in the largest criminal tax-fraud case in United States history. The case was brought up to determine if the former KPMG executives intentionally helped clients avoid over $2.5 billion in federal tax liabilities through use of unlawful tax shelters. Judge Lewis A. Kaplan cited "intolerable" prosecutorial abuses that deprived the defendants of their constitutional right to a defense. Federal prosecutors pressured KPMG to stop paying the legal bills of their employees who refused to cooperate with the investigation. "There are limits on the permissible actions of even the best prosecutors," Judge Kaplan claimed. "The responsibility for the dismissal of this indictment . . . lies with the government." However, prosecutors are already considering their options for an appeal.