Corporate Profits Are Way Up, Corporate Taxes Are Way Down

"Corporations are stashing billions of dollars offshore to avoid paying taxes. If the next president and Congress decided to tackle corporate tax reform, perhaps the single largest priority should be closing the gaping deferral loophole, which not only causes the federal government to hemorrhage revenue, but also provides an incentive for U.S. companies to shift production and large profits offshore. The driving force behind the recent erosion of the corporate income tax base is the largest corporate loophole- deferral of taxes paid on profits booked abroad. Deferral allows corporations to stash billions of dollars offshore to avoid paying taxes on them... deferral will drain the U.S. Treasury of about $1.3 trillion in tax revenue over 10 years."