Corporate Corruption News ArticlesExcerpts of key news articles on corporate corruption
In January 1993, David Reynard sued the NEC America Company, claiming that his wife’s NEC phone caused her lethal brain tumor. After Reynard appeared on national TV, the story went viral. A week later, [Cellular Telecommunications and Internet Association president Tom] Wheeler announced that his industry would pay for a comprehensive research program. Cell phones were already safe, Wheeler told reporters; the new research would simply “re-validate the findings of the existing studies.” George Carlo seemed like a good bet to fulfill Wheeler’s mission. In 1995, Carlo began directing the industry-financed Wireless Technology Research project (WTR), whose eventual budget of $28.5 million made it the best-funded investigation of cell-phone safety to date. He and Wheeler would eventually clash bitterly over the ... findings, which Carlo presented to wireless-industry leaders on February 9, 1999. By that date, the WTR had commissioned more than 50 original studies and reviewed many more. Those studies raised “serious questions” about cell-phone safety. A livid Tom Wheeler began publicly trashing Carlo to the media. Wheeler’s tactics succeeded in dousing the controversy. In the years to come, the WTR’s cautionary findings would be replicated by numerous other scientists ... leading the World Health Organization in 2011 to classify cell-phone radiation as a “possible” human carcinogen and the governments of Great Britain, France, and Israel to issue strong warnings on cell-phone use by children.
Note: Read the complete article above to learn how far the wireless industry has gone to hide the dangers of its products from the public. Also worthy of attention is a Harvard study titled "How the Federal Communications Commission Is Dominated by the Industries It Presumably Regulates". For more along these lines, see concise summaries of deeply revealing news articles on the risks and dangers of wireless technologies.
The CEO of Marathon Petroleum, Gary Heminger, took home an astonishing 935 times more pay than his typical employee in 2017. One of Marathon’s gas station workers would have to toil more than nine centuries to make as much as Heminger grabbed in just one year. Employees of at least five other US firms would have to work even longer – more than a millennium – to catch up with their top bosses. These companies include the auto parts maker Aptiv (CEO-worker pay ratio: 2,526 to 1), the temp agency Manpower (2,483 to 1), amusement park owner Six Flags (1,920 to 1), Del Monte Produce (1,465 to 1), and apparel maker VF (1,353 to 1). These revelations come thanks to a new federal regulation that requires publicly traded US corporations to disclose, for the first time ever, how much their chief executives are making compared with their median workers. The disclosures are just now starting to flow in. Ever since 2010, the year Congress plugged a ratio disclosure mandate into the Dodd-Frank financial reform act, corporate lobbyists have been scheming to delay and repeal that mandate’s implementation. But responsible investors and other activists rallied and kept the mandate in place. The new ratios offer a benchmark for corporate greed that exposes exactly which firms are sharing the wealth their employees create and which aren’t, knowledge we can use to impose consequences on the corporations doing the most to make the United States more unequal.
Note: For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
As tens of thousands of Americans die from prescription opioid overdoses each year, an exclusive analysis by CNN and researchers at Harvard University found that opioid manufacturers are paying physicians huge sums of money - and the more opioids a doctor prescribes, the more money he or she makes. The CNN/Harvard analysis looked at 2014 and 2015, during which time more than 811,000 doctors wrote prescriptions to Medicare patients. Of those, nearly half wrote at least one prescription for opioids. Fifty-four percent of those doctors - more than 200,000 physicians - received a payment from pharmaceutical companies that make opioids. Among doctors in the top 25th percentile of opioid prescribers by volume, 72% received payments. Among those in the top fifth percentile, 84% received payments. Among the very biggest prescribers ... 95% received payments. On average, doctors whose opioid prescription volume ranked among the top 5% nationally received twice as much money from the opioid manufacturers, compared with doctors whose prescription volume was in the median. Pharmaceutical company payments to doctors are not unique to opioids. Drug companies pay doctors billions of dollars for various services. In 2015, 48% of physicians received some pharmaceutical payment. The CNN and Harvard findings are in line with other studies suggesting that money from drug companies does influence a doctor's prescribing habits.
Note: From 1999 to 2015, over 183,000 people died from prescription opioid overdoses in the US. A CBS article titled, "Ex-DEA agent: Opioid crisis fueled by drug industry and Congress" describes major regulatory failures that contributed to this crisis. For more along these lines, see concise summaries of deeply revealing Big Pharma corruption news articles from reliable major media sources.
Olympic gold-medal-winning gymnast McKayla Maroney alleges in a lawsuit filed in Los Angeles on Wednesday that USA Gymnastics paid her to be quiet about abuse by the team's longtime doctor Larry Nassar. The lawsuit ... also names as defendants Michigan State University, the US Olympic Committee and Nassar, the former team doctor who has admitted sexually abusing underage girls. "In December of 2016, after suffering for years from psychological trauma of her sexual abuse at the hands of Nassar, and in need of funds to pay for psychological treatment," Maroney was forced to enter into a confidential agreement with USA Gymnastics, the lawsuit said. John Manly, Maroney's attorney, called the confidentiality agreement "an immoral and illegal attempt to silence a victim of child sexual abuse. The US Olympic Committee and USA Gymnastics were well aware that the victim of child sexual abuse in California cannot be forced to sign a nondisclosure agreement as a condition of a settlement," he said. "Such agreements are illegal for very good reasons - they silence victims and allow perpetrators to continue committing their crimes." Maroney entered the settlement to "obtain funds necessary to pay for lifesaving psychological treatment and care," according to the lawsuit. Nassar was sentenced to 60 years in federal prison on child pornography charges earlier this month. In November, he pleaded guilty to seven counts of first-degree criminal sexual conduct and admitted to using his position to sexually abuse underage girls.
For decades, Don Anderson of Seattle has been taking the same drug to help control the temporary bouts of immobility and muscle weakness caused by a rare and frightening genetic illness called periodic paralysis. The drug Anderson has been taking all these years was originally approved in 1958 and used primarily to treat the eye disease glaucoma under the brand name Daranide. The price has been on a roller coaster in recent years — zooming from a list price of $50 for a bottle of 100 pills in the early 2000s up to $13,650 in 2015, then plummeting back down to free, before skyrocketing back up to $15,001 after a new company, Strongbridge Biopharma, acquired the drug and relaunched it this spring. The zigzagging trajectory of the price of Daranide, now known as Keveyis, shows just how much freedom drug companies have in pricing therapies — and what a big business opportunity selling extremely-rare-disease drugs has become. In 2016, after The Washington Post asked questions about the high price of the drug, Sun Pharmaceutical said it would give the drug away free. Late last year, Sun agreed to sell Keveyis to a biotech company, Strongbridge Biopharma. In April, Strongbridge relaunched the drug. In August, it jacked the list price ... to $15,001 for a bottle of 100 pills. In a PowerPoint presentation for investors, Strongbridge Biopharma estimated that the annual price of treatment for the drug, Keveyis, would range from $109,500 to $219,000.
Note: For more along these lines, see concise summaries of deeply revealing Big Pharma corruption news articles from reliable major media sources.
Why do Americans continue to pay the highest prices for medicine in the world? Lawmakers have sculpted specific policies, often not found in many other nations, that boost pharmaceutical industry profits. Meanwhile, the drug industry has spent $61 million on state elections and nearly $67 million on federal elections since 2010. Both parties have made pivotal decisions ... that have kept drug prices high. Insurance companies and pharmacy benefit managers, or PBMs, across the U.S., face at least nine class-action lawsuits alleging they attached arbitrary premiums to the prices of often less-expensive, generic prescription drugs. The plaintiffs also accuse the PBMs and insurers of imposing so-called “gag clauses” on pharmacies to keep pharmacists from telling consumers that they could save money by paying out of pocket. The system could be denying customers $120 billion in discounts and rebates. Should drugs developed at taxpayer expense be sold to Americans at sky high prices? In the past, the federal government passed a rule saying no — but that rule was rescinded in 1995. If Americans were allowed to import lower-priced drugs from places like Canada, it would save government agencies alone $6 billion. But ... Americans are still prohibited from engaging in such importation. The federal government could [also] save billions of dollars a year by having Medicare use its huge market power to negotiate - or require - lower drug prices for the program's beneficiaries.
In the summer of 2012, a subcommittee of the U.S. Senate released a report. [After] looking into the London-based banking group HSBC, [investigators] discovered that ... the bank had laundered billions of dollars for Mexican drug cartels, and violated sanctions. No criminal charges were filed, and no executives or employees were prosecuted. Instead, HSBC pledged to clean up its institutional culture, and to pay a fine of nearly two billion dollars: the equivalent of four weeks’ profit for the bank. In the years since the mortgage crisis of 2008 ... corporate executives have essentially been granted immunity. As recently as 2006, when Enron imploded, such titans as Jeffrey Skilling and Kenneth Lay were convicted of conspiracy and fraud. Something has changed in the past decade, however, and federal prosecutions of white-collar crime are now at a twenty-year low. As Jesse Eisinger, a reporter for ProPublica, explains in a new book ... a financial crisis has traditionally been followed by a legal crackdown, because a market contraction reveals all the wishful accounting and outright fraud that were hidden when the going was good. After the mortgage crisis, people in Washington and on Wall Street expected prosecutions. Eisinger reels off a list of potential candidates for criminal charges: Countrywide, Washington Mutual, Lehman Brothers, Citigroup, A.I.G., Bank of America, Merrill Lynch, Morgan Stanley. Although fines were paid ... there were no indictments, no trials, no jail time.
The companies responsible for programming your phones are working hard to get you and your family to feel the need to check in constantly. Some programmers call it “brain hacking” and the tech world would probably prefer you didn’t hear about it. Ramsay Brown studied neuroscience before co-founding Dopamine Labs. The company is named after the dopamine molecule in our brains that aids in the creation of desire and pleasure. Brown and his colleagues write computer code for apps ... designed to provoke a neurological response. The computer code he creates finds the best moment to give you ... rewards, which have no actual value, but Brown says trigger your brain to make you want more. When Brown says “experiments,” he’s talking generally about the millions of computer calculations being used every moment by his company and others use to constantly tweak your online experience. "You’re part of a controlled set of experiments that are happening in real time across you and millions of other people," [said Brown]. "You’re guinea pigs ... pushing the button and sometimes getting the likes. And they’re doing this to keep you in there. You don’t pay for Facebook. Advertisers pay for Facebook. You get to use it for free because your eyeballs are what’s being sold there." While Brown is tapping into the power of dopamine, psychologist Larry Rosen and his team at California State University ... are researching the effect technology has on our anxiety levels. Their research suggests our phones are keeping us in a continual state of anxiety in which the only antidote – is the phone.
Note: This new form of "brain hacking" adds to a vast arsenal of behavior modification technologies developed by government and industry. For more along these lines, see concise summaries of deeply revealing news articles on mind control and the disappearance of privacy.
To combat an escalating opioid epidemic, the Drug Enforcement Administration trained its sights in 2011 on Mallinckrodt Pharmaceuticals, one of the nation’s largest manufacturers of the highly addictive generic painkiller oxycodone. It was the first time the DEA had targeted a manufacturer of opioids for alleged violations of laws designed to prevent diversion of legal narcotics to the black market. Ultimately, the DEA and federal prosecutors would contend that the company ignored its responsibility to report suspicious orders as 500 million of its pills ended up in Florida between 2008 and 2012. Investigators alleged in internal documents that the company’s lack of due diligence could have resulted in nearly 44,000 federal violations and exposed it to $2.3 billion in fines. But six years later ... the government has taken no legal action against Mallinckrodt. Instead, the company has reached a tentative settlement. Under the proposal, which remains confidential, Mallinckrodt would agree to pay a $35 million fine and admit no wrongdoing. “Mallinckrodt’s response was that ‘everyone knew what was going on in Florida but they had no duty to report it,’” according to an internal summary of the case prepared by federal prosecutors. The Post reported in October that the DEA’s civil and administrative enforcement efforts against the mammoth wholesale distributors that deliver painkillers to pharmacies stalled in the face of a stepped-up lobbying campaign by the drug industry.
Note: The city of Everett, Washington is currently suing Purdue Pharma, maker of the opioid pain medication OxyContin, for the company's alleged role in the diversion of its pills to black market buyers. For other reliable information on pharmaceutical involvement in the huge increase in opioid deaths, see Dr. Mercola's excellent article. For more along these lines, see concise summaries of deeply revealing pharmaceutical corruption news articles from reliable major media sources.
I Googled “mainstream media is…” And there it was. Google’s autocomplete suggestions: “mainstream media is… dead, dying, fake news, fake, finished”. Google’s first suggested link ... leads to a website called CNSnews.com and an article: “The Mainstream media are dead.” How had it, an obscure site I’d never heard of, dominated Google’s search algorithm on the topic? In the “About us” tab, I learn CNSnews is owned by the Media Research Center. It receives a large bulk of its funding – more than $10m in the past decade – from a single source, the hedge fund billionaire Robert Mercer. Robert Mercer is the money behind an awful lot of things. He was Trump’s single biggest donor. Since 2010, Mercer has donated $45m to different political campaigns – all Republican – and another $50m to non-profits – all rightwing, ultra-conservative. This is a billionaire who is ... trying to reshape the world according to his personal beliefs. He is reported to have a $10m stake in the [Cambridge Analytica], which was spun out of a bigger British company called SCL Group. It specialises in “election management strategies” and “messaging and information operations”, refined over 25 years. In military circles this is known as “psyops” – psychological operations. Cambridge Analytica makes the astonishing boast that it has psychological profiles based on 5,000 separate pieces of data on 220 million American voters. With this, a computer ... can predict and potentially control human behaviour. It’s incredibly dangerous.
Extremely high radiation levels have been recorded inside a damaged reactor at the Fukushima Daiichi nuclear power station, almost six years after the plant suffered a triple meltdown. Tokyo Electric Power (Tepco) said atmospheric readings as high as 530 sieverts an hour had been recorded inside the containment vessel of reactor No 2, one of three reactors that experienced a meltdown when the plant was crippled. Even if a 30-percent margin of error is taken into account, the recent reading, described by some experts as “unimaginable”, is far higher than the previous record of 73 sieverts an hour detected by sensors in 2012. A single dose of one sievert is enough to cause radiation sickness and nausea; 5 sieverts would kill half those exposed to it within a month, and a single dose of 10 sieverts would prove fatal within weeks. Quantities of melted fuel are believed to have accumulated at the bottom of the damaged reactors’ containment vessels, but dangerously high radiation has prevented engineers from accurately gauging the state of the fuel deposits. The extraordinary radiation readings highlight the scale of the task confronting thousands of workers, as pressure builds on Tepco to begin decommissioning the plant – a process that is expected to take about four decades. In December, the government said the estimated cost of decommissioning the plant and decontaminating the surrounding area ... had risen to 21.5tn yen (Ł150bn), nearly double an estimate released in 2013.
Note: For more along these lines, see concise summaries of deeply revealing nuclear power news articles from reliable major media sources.
A wide-ranging investigation into generic drug prices took its most significant turn yet on Thursday, as state attorneys general accused two industry leaders, Teva Pharmaceuticals and Mylan, and four smaller companies of engaging in brazen price-fixing schemes - and promised that more charges were coming. A civil complaint filed by 20 states accuses the companies of conspiring to artificially inflate prices on an antibiotic and a diabetes drug, with executives coordinating through informal industry gatherings and personal calls and text messages. Officials said the case was a small example of broader problems in the drug business. “We believe that this is just the tip of the iceberg,” George C. Jepsen, Connecticut’s attorney general, whose office started the inquiry that led to the charges, said. “I stress that our investigation is continuing, and it goes way beyond the two drugs in this lawsuit, and it involves many more companies than are in this lawsuit.” The complaint on Thursday describes a cozy industry culture defined by regular dinners and social outings, and argues that those events often cross the line to violate antitrust rules. Generic drug makers hoping to begin selling a new drug first seek out rivals, the suit says, in hopes of reaching an agreement on how to maintain market share and avoid competing on price. “These agreements had the effect of artificially maintaining high prices for a large number of generic drugs and creating an appearance of competition when in fact none existed,” the lawsuit says.
Note: A separate anti-trust investigation into Mylan was recently launched in New York over price-fixing on public school EpiPen contracts. For more along these lines, see concise summaries of deeply revealing Big Pharma corruption news articles from reliable major media sources.
A former top Drug Enforcement Administration (DEA) official has accused Congress of putting pharmaceutical company profits ahead of public health in the battle to combat the US’s prescription opioid epidemic. Joseph Rannazzisi, head of the DEA office responsible for preventing prescription medicine abuse until last year, said drug companies and their lobbyists have a “stranglehold” on Congress to protect a $9bn a year trade in opioid painkillers claiming the lives of nearly 19,000 people a year. Rannazzisi ... said the drug industry engineered recent legislation limiting the DEA’s powers to act against pharmacies endangering lives by dispensing disproportionately large numbers of opioids. He also accused lobbyists ... of whipping up opposition to new guidelines for doctors intended to reduce the prescribing of the painkillers. Charges that Congress is too beholden to pharmaceutical companies have been levelled for years. But ... the influence on opioid policies is particularly disturbing because so many lives are being lost. Industry groups have spent hundreds of millions of dollars in lobbying to stave off measures to reduce prescriptions and therefore sales of opioid painkillers. Among the most influential drug industry groups is the Pain Care Forum, co-founded by a top executive of Purdue Pharma – the manufacturer of the opioid which unleashed the addiction epidemic, OxyContin. It spent $740m lobbying Congress and state legislatures over the past decade.
Genetic modification in the United States and Canada has not accelerated increases in crop yields or led to an overall reduction in the use of chemical pesticides. The promise of genetic modification was twofold: By making crops immune to the effects of weedkillers and inherently resistant to many pests, they would grow so robustly that they would become indispensable to feeding the world’s growing population, while also requiring fewer applications of sprayed pesticides. Twenty years ago, Europe largely rejected genetic modification at the same time the United States and Canada were embracing it. Comparing results on the two continents ... shows how the technology has fallen short of the promise. The United States and Canada have gained no discernible advantage in yields - food per acre - when measured against Western Europe. Also, a recent National Academy of Sciences report found that “there was little evidence” that the introduction of genetically modified crops in the United States had led to yield gains beyond those seen in conventional crops. At the same time, herbicide use has increased in the United States. And the United States has fallen behind Europe’s biggest producer, France, in reducing the overall use of pesticides, which includes both herbicides and insecticides. Pesticides are toxic by design ... and have been linked to developmental delays and cancer. The same companies make and sell both the genetically modified plants and the poisons.
Note: Explore over 40 scientific studies that have demonstrated the health dangers of GM foods. For more along these lines, see concise summaries of deeply revealing news articles on food system corruption and the GMO controversy.
A group of computer security experts say they figured out how to hack the keyless entry systems used on millions of cars, meaning that thieves could in theory break and steal items without leaving a broken window. Remote entry systems on millions of cars made by Volkswagen since 1995 can be cloned to permit unauthorized access to the car's interior. Another system used by other brands including Ford, General Motor's Opel and Chevrolet and Renault can also be defeated. In a paper to be delivered Friday at the Usenix security conference in Austin, Texas, the authors say a thief could use commonly available equipment to intercept entry codes as they are transmitted by radio frequency, and then use that information to clone another remote so the car could be opened. The paper leaves out key details on how to perform the hack but says the codes can be intercepted with commercially available equipment. "It is unclear whether such attacks ... are currently carried out in the wild by criminals," the report says. "However, there have been various media reports about unexplained theft from locked vehicles in the last years." The report did not establish the exact number of cars that use the vulnerable systems. The report authors said that insurance companies might have to accept that car theft scenarios that would otherwise be considered insurance fraud have a higher probability of being genuine. The only surefire countermeasure, they said, would be to stop using the remote and fall back on the mechanical lock using the conventional metal key.
Note: In 2013, Volkswagen blocked the release of an academic paper describing the vulnerability of its ignition systems to hacking. For more along these lines, see concise summaries of deeply revealing corporate news articles from reliable major media sources.
Physician influence can be bought for as little as a $20 meal, UCSF researchers have found. A study published Monday in JAMA Internal Medicine ... found that doctors who received just one meal averaging $20 were up to twice as likely to prescribe brand-name drugs being promoted than doctors who did not receive any free food. Gifts from pharmaceutical companies to doctors ... have come under scrutiny in recent years for concerns that the money spent by drugmakers directly influences what physicians write on their prescriptions pads. Some doctors deny they’re influenced by money, but a growing number of studies show that financial ties can affect their professional behavior. The UCSF researchers looked at ... the routine briefings many doctors and their staff receive from drug reps during lunches in their offices. The study found that the effect increased as doctors got more meals. Those who received multiple meals were up to three times as likely to prescribe the promoted brand-name drug. Higher-cost meals were associated with greater influence. Doctors who received four or more meals to promote Allergan’s Bystolic to treat hypertension prescribed the drug at 5.4 times the rate of physicians who received no meals. For Pfizer’s depression drug Pristiq, that rate was 3.4 times higher. UCSF researchers said that their studies show the buying power of drug makers decreases the use of cheaper, generic drugs and raises costs for patients as well as the health care system.
Note: For more along these lines, see concise summaries of deeply revealing big Pharma profiteering news articles from reliable major media sources.
The U.S. lambastes and strong-arms countries that help drug lords and millionaire investors hide their money from tax collectors. Critics say it should look closer to home. America itself is emerging as a top tax haven alongside the likes of Switzerland, the Cayman Islands and Panama. And states such as Delaware, Nevada, South Dakota and Wyoming, in particular, are competing with each other to provide foreigners with the secrecy they crave. "There's a big neon sign saying the U.S. is open to tax cheats," says John Christensen, executive director of the Tax Justice Network. America's openness to foreign tax evaders is coming under new scrutiny after the leak this week of 11.5 million confidential documents from a Panamanian law firm, [which] show how some of the world's richest people hide assets in shell companies to avoid paying taxes. Christensen's group, which campaigns for a global crackdown on tax evaders, says the United States ranks third in the world in financial secrecy, behind Switzerland and Hong Kong but ahead of notorious tax havens such as the Cayman Islands and Luxembourg. Under a 2010 law, passed after it was learned that the Swiss bank UBS helped thousands of Americans evade U.S. taxes, the United States demands that banks and other financial institutions disclose information on Americans abroad to make sure they pay their U.S. taxes. But ... American banks don't even collect the kind of information foreign countries would need to identify tax dodgers.
Note: A 2015 Guardian newspaper article further describes how the US helps the super-rich hide assets. For more along these lines, see concise summaries of deeply revealing financial industry corruption news articles from reliable major media sources.
The world is awash in glyphosate, the active ingredient in the herbicide Roundup, produced by Monsanto. It has now become the most heavily-used agricultural chemical in the history of the world. A study published Tuesday ... reveals that Americans have applied 1.8 million tons of glyphosate since its introduction in 1974. Worldwide, 9.4 million tons of the chemical have been sprayed onto fields. That’s ... enough to spray nearly half a pound of Roundup on every cultivated acre of land in the world. And it’s troubling, considering that in March 2015 the World Health Organization’s International Agency for Research on Cancer unanimously determined that glyphosate is probably carcinogenic to humans. Research has also shown that glyphosate is an endocrine disruptor, meaning that it interferes with the proper functioning and production of hormones, in human cell lines. The mass-spraying of glyphosate has [also] led to the explosion of resistant weeds, which have evolved to survive despite being sprayed. Already, weeds resistant to the herbicide are found on half of all American farmers’ fields. Glyphosate was once only used on a small-scale. However, in the 1990s, Monsanto began introducing genetically modified crops that were resistant to the herbicides, such as Roundup Ready corn and soybeans. Since then, its use has skyrocketed. At the same time, the U.S. Environmental Protection Agency has relaxed its rules. Fifty times more glyphosate is allowed on corn grain now than in 1996.
Note: The negative health impacts of Monsanto's Roundup are well known. Major lawsuits are building over Monsanto's lies to regulators and the public about the safety of glyphosate. For more along these lines, see concise summaries of deeply revealing GMO news articles from reliable major media sources.
On Page 5 of a credit card contract used by American Express ... is a clause that most customers probably miss. If cardholders have a problem with their account, American Express explains, the company “may elect to resolve any claim by individual arbitration.” Those nine words are at the center of a far-reaching power play orchestrated by American corporations. By inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies like American Express devised a way to circumvent the courts and bar people from joining together in class-action lawsuits, realistically the only tool citizens have to fight illegal or deceitful business practices. It has become increasingly difficult to apply for a credit card, use a cellphone, get cable or Internet service, or shop online without agreeing to private arbitration. The same applies to getting a job, renting a car or placing a relative in a nursing home. By banning class actions, companies have essentially disabled consumer challenges to ... predatory lending, wage theft and discrimination. “This is among the most profound shifts in our legal history,” William G. Young, a federal judge ... said in an interview. “Ominously, business has a good chance of opting out of the legal system altogether and misbehaving without reproach.” Thousands of cases brought by single plaintiffs over fraud, wrongful death and rape are now being decided behind closed doors. And the rules of arbitration largely favor companies.
A new report provides data illustrating just how big a budgetary issue tax avoidance has become. The analysis released Tuesday comes from ... Citizens for Tax Justice and U.S. Public Interest Research Group. The groups find that almost 72 percent of Fortune 500 companies are operating subsidiaries in so-called “tax haven” countries like Bermuda and the Cayman Islands. In all, those firms are “holding more than $2.1 trillion in accumulated profits offshore for tax purposes.” The report says that among the U.S.-based firms with the biggest overseas cash holdings are major financial firms such as Citigroup and Bank of America, which were bailed out by taxpayers after the 2008 financial crisis. Also on the list are tech giants such as Microsoft - which International Business Times last year reported was keeping $92 billion offshore. Assuming a tax rate of just 6 percent on those profits - far less than the official U.S. corporate tax rate and less than Trump’s proposed “repatriation” rate - the groups estimate that the firms “would collectively owe $620 billion in additional federal taxes” if they weren’t able to shelter their cash in tax havens. For comparison, that’s more than the federal government’s entire projected budget deficit for 2015.
Note: For more along these lines, see concise summaries of deeply revealing corporate corruption news articles from reliable major media sources.
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