Md. must close corporate tax loopholes

March 15, 2012

Annie Linskey's recent article regarding Maryland tax revenue estimates ("State reduces estimates of 2 years' tax receipts," March 8) failed to identify a major problem draining our state of revenue — corporate tax loopholes. When large corporations abuse loopholes and skirt paying the taxes they otherwise would owe, small and mid-sized businesses are forced to shoulder the burden of higher taxes or deal with a decline in the public infrastructure and services that help businesses thrive.

At least 83 of America's top 100 publicly traded companies shift profits to subsidiaries in offshore tax havens like the Cayman Islands. Some of these "subsidiaries" are nothing more than postal boxes. In fact, there is a single building in the Cayman Islands that is home to 18,857 registered corporations. Companies that make profits in America benefit from our roads, education system and security. They should therefore pay taxes to support those benefits like the rest of us, plain and simple.

Since these loopholes can only be used by large multi-national companies that can hire armies of high-priced tax lawyers, it gives them a competitive advantage over the responsible small and mid-sized businesses that must play by the rules. Closing offshore tax loopholes will level the playing field for small and mid-sized businesses.

Jan Naylor, Oakland

The writer is president of A. D. Naylor & Co., Inc.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.