We’re Not Broke: The Corporate Tax Cheats of America

Directed by Karin Hayes and Victoria Bruce (2012)

Film Review

We’re Not Broke exposes so-called “austerity” for what it really is: a massive wealth transfer from poor people to rich people. This wealth transfer occurs in two ways – by shifting the tax burden (through tax evasion) from rich people to poor and middle class people and by cutting the public services (schools, libraries, clinics, public transport and infrastructure such as roads, bridges and water service) that create the real economic wealth in society.

This documentary mainly focuses on tax evasion by American corporations who profit off US government infrastructure (especially the court system) but avoid US income taxes by registering their companies in tax havens, such as Ireland, the Bahamas and the Cayman Islands. Among the major US companies that pay no US income tax are Exxon, Chevron, City Group, Pfizer (the drug company that manufactures Viagra), GE, Bank of America and Wells Fargo. Google pays US income tax amounting to 2% of its net profits in US income tax.

I was particularly astonished to learn that US defense contractors (Cisco, Lockheed, Caterpillar, GM and Verizon) – whose primary client is the US government – also participate in these tax avoidance schemes.

The film also focuses on the work of US Uncut, a grassroots organization formed in early 2011. It was modeled after the group UK Uncut. The purpose of both groups was to educate the public about the extent of corporate tax evasion. Sadly the US group seems to have been subsumed by Occupy Wall Street in late 2011. Their website has morphed into a general Internet news site – earlier this year, they endorsed Bernie sanders for president.

In contrast, UK Uncut member groups continue to mobilize grassroots actions protest and civil disobedience around Britain. Their efforts (in conjunction with the Panama Papers scandal) have resulted in new legislation cracking down on British overseas territories (Virgin Islands, Cayman Islands and Jersey) that serve as tax havens. See UK Tightens Tax Laws

Comments
  1. auntyuta says:

    ” . . . shifting the tax burden (through tax evasion) from rich people to poor and middle class people and by cutting the public services (schools, libraries, clinics, public transport and infrastructure such as roads, bridges and water service) that create the real economic wealth in society. . . . ”

    I once heard that the Scandinavian countries are in a different position: The rich share in the tax burden and public services do not need cutting on a regular basis. Is it still like this in these countries, and why can it not be like this everywhere?

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