The segment discusses the complexity and confusion surrounding the U.S. tax system, exemplified by Cardi B's viral video questioning government spending of her taxes. It highlights the recent omnibus spending package, indicating that most taxes fund military, healthcare, Social Security, and veteran benefits. The segment criticizes the 2017 tax reform for favoring corporations with significant rate cuts and questions the effectiveness of repatriation in creating jobs, citing past instances where similar measures led to stock buybacks rather than employment growth. It also explores corporate tax avoidance strategies like the "double Irish with a Dutch sandwich" and notes Apple's defensive stance on its tax practices. The piece concludes by suggesting that Trump's tax reform allows continued tax avoidance and benefits the wealthy, as evidenced by his comment at Mar-a-Lago.
Here are the key facts from the text:
1. Today is April 15th, but the tax deadline is actually April 17th due to the weekend and a holiday.
2. Cardi B expressed frustration on Instagram about the government taking 40% of her taxes.
3. The recently passed omnibus spending package outlines where tax money goes, including the military, healthcare, Social Security, veteran and unemployment benefits, discretionary spending, and interest.
4. Late last year, Republicans passed and Donald Trump signed a tax reform bill.
5. Trump promised the tax reform bill would help working-class Americans, but critics argue it benefits corporations and the wealthy.
6. The top federal corporate tax rate was reduced from 35% to 21%.
7. Many companies didn't pay the full 35% tax rate before the bill was signed, with an effective rate closer to 24%.
8. Some large companies have historically paid far less than 24% in taxes.
9. In 2010, GE had profits of $14.2 billion, but its expected US tax bill was zero.
10. Between 2008 and 2015, 18 large profitable companies, including General Electric, paid no federal income tax.
11. Companies have used various tactics to avoid taxes, including moving profits offshore to low-tax countries.
12. In 2016, nearly two-thirds of the profits made by American multinationals outside the US were booked in just six low or zero-tax countries.
13. Companies like Google and Apple have used complex tax avoidance schemes, including the "double Irish with a Dutch sandwich."
14. Trump's tax bill forces companies to pay taxes on money stashed overseas, but at a lower rate of 8-15%.
15. The Senate looked at the employment numbers of 15 companies that brought back the most money after a 2004 tax holiday and found little job creation.
16. In 2004, companies brought back money at a 5% tax rate, but mostly rewarded shareholders instead of creating jobs.
17. Apple announced plans to create over 20,000 new jobs after the tax bill was signed, but it's unclear how much of this is due to the tax reform.
18. Trump tweeted that his policies allowed companies like Apple to bring back money and create jobs.
19. Tim Cook said that while some of the hiring was due to tax reform, much of it would have happened anyway.
20. Effective tax reform is not just about lowering rates, but also about closing loopholes and reducing abuse of tax havens.
21. A proposal to force companies to pay a minimum tax in every country they operate in was not included in the tax reform bill.
22. Trump told a group of wealthy people at his exclusive Mar-a-Lago estate that they had just gotten a lot richer due to the tax cut bill.