The hot tax-dodging business trend of the summer is inversion. A U.S. company buys a company in a country with a lower corporate tax rate, relocates its headquarters there and funnels its income through the new head office. As long as it does not repatriate profits, the self-exiled company can avoid paying U.S. corporate taxes.
The Great Debate
Chief Justice John Roberts’ first sentence of his majority opinion in McCutcheon v. Federal Elections Commission, striking down important limits on campaign contributions, declares “There is no right more basic in our democracy than the right to participate in electing our political leaders.”
On Wednesday, the Supreme Court handed down its most important decision on campaign finance reform since Citizens United. The decision, McCutcheon v. Federal Election Commission, seemed to divide along familiar ideological lines, with Chief Justice John Roberts writing the majority opinion for five conservatives and Justice Stephen Breyer, writing the dissent for the four liberals.
On March 25 the Supreme Court will hear arguments in two cases, Sebelius v. Hobby Lobby Stores and Conestoga Wood Specialties Corp. v. Sebelius, whose outcomes will decide whether corporations can exempt themselves from provisions of the Affordable Care Act (ACA), based on religious beliefs. The cases challenge a provision of the ACA that requires employer-provided insurance plans to include contraception coverage.
The venture capitalist Tom Perkins recently suggested that he should have a greater voice than others in selecting our government because he’s rich. “You pay a million dollars in taxes,” he told the Commonwealth Club in San Francisco, “you get a million votes. How’s that?”
Tuesday’s oral argument in McCutcheon v. FEC, the latest high-profile campaign finance case, will likely generate familiar storylines about a fiercely ideological Supreme Court, where one justice drives the outcome of a close 5-4 decision. Public perception of the Supreme Court is that there are four conservatives, four liberals and Justice Anthony Kennedy in the middle — as the “swing” vote.
How our nation’s founding fathers would feel about Tumblr is as impossible for the Supreme Court to know as how James Madison would have felt about violent video games. But fortunately there’s a new Tumblr blog available to help the justices understand how the framers of the Constitution felt about “corruption” in politics.
The explosion in hidden election spending is one of the most discussed phenomena in American politics today. What’s less known is that a large number of America’s leading corporations are disclosing their political spending, and that number is steadily growing.