Originally Posted by
Excargodog
Disagree.
Were the US to DESIRE to do so, Congress coukd pass an excess profits tax on US oil companies exporting that would disincentivize petrochemical exports. They could LARGELY divorce the US petrochemical industry from the REST of the world economy. The companies would make less money and the international price of oil woukd increase, but manipulations to maximize profits (or retain more money locally) is what OPEC has been doing for decades.
Doubtful in this Congress.To say nothing of the loopholes already existing in offshore accounts.
Tax Avoidance Strategies of US Corporations
Since early 2025, American corporations have managed to evade over $40 billion in taxes following the Trump administration's exit from a global initiative aimed at reducing offshore tax evasion, as reported by a leading news outlet. The investigation reveals that numerous multinational firms have redirected profits to low-tax regions like Malta, Bermuda, Cyprus, the Cayman Islands, and Switzerland, frequently utilizing subsidiaries that operate with minimal or no workforce, offices, or actual business activities. his trend emerged after President Trump opted out of the OECD-supported global minimum tax framework, known as Pillar 2, on his first day back in office. This agreement aimed to establish a 15% minimum corporate tax rate globally to deter profit shifting to tax havens.
Companies from nearly every significant industry have employed offshore strategies to drastically lower their tax obligations. Notable firms mentioned include American Express, PayPal, Walmart, Uber, PepsiCo, Honeywell, and Abbott Laboratories.
Malta has been identified as a key location for tax savings, with allegations that Abbott Laboratories funneled global profits through a Maltese subsidiary that has no employees, significantly slashing its tax liabilities by hundreds of millions.
This analysis is based on recent disclosures in corporate SEC filings, which mandate public companies to disclose tax savings associated with foreign operations. Critics contend that the withdrawal from the global tax agreement has undermined efforts to combat aggressive offshore tax strategies, allowing companies to broaden such practices.