A letter signed by dozens of Minnesota religious leaders decries corporate tax loopholes that keep billions of dollars out of the tax system and further widen the income gap and cause shortfalls for those in need.
The clerics call on state officials and business leaders to fix the problem and push forward with "a moral and forward-looking budget that plans for a future where everyone thrives."
The clergy, associated with the ISAIAH coalition of religious congregations seeking racial and economic equity in Minnesota, said steps must be taken to stop the increase of poverty.
In a statement about the need for change, Pastor Stephen Cook, Bethlehem Lutheran Church in St. Cloud, said:
"The people who I represent don't have a voice. They don't have trade associations to advance their interests, what they have is me, and people like me, and the others here today. Hundreds of others who hear this cry and bring them to the attention of our legislature."
In the letter, the group says these recent findings illustrate the need for change:
- Multinational corporate profits are at an all-time high. (Federal Reserve, 2012)
- All told, state taxpayers across the country lost nearly $40 billion last year from offshore tax loophole abuse. It’s also enough money to cover the educational costs for 3.7 million children for one full year.
- In Minnesota, $1.32 billion was lost from the corporate abuse of tax havens and $629 million was lost from individuals.
- If we repatriated all the dollars sitting in tax havens around the world, 1.95 billion would come into Minnesota. That in itself is the size of our current state budget deficit.
- Small and medium-sized business here in Minnesota and elsewhere do not have the ability to take advantage of these “loopholes” and so an unfair tax burden falls to them as well as to everyday working families.
Says the letter:
The people we serve, the people we love, the children we care for, and the communities we have dreams for are all at stake. We love them too much to remain silent or to tolerate the suffering of the many for the sake of a powerful few.
Therefore, we call on our elected state leaders to advance a moral and forward-looking budget that plans for a future where everyone thrives.
We call for responsible leadership from our business community. It is time for a renewal of good corporate citizenship and for the leaders of large corporations to remember that they are a part of the community, linked to our common success.