Rally Targets Verizon's Tax Dodging

<p>A rally was held at a local verizon location to bring attention to Verizon's abysmal record of paying state and federal income taxes.&nbsp; Despite Verizon making profits of $33.4 billion between 2008-2010, Verizon paid only $866 million in NYS taxes or a rate of 2.6% and actually received a $951 million rebate from the federal government or a rate of -2.9%.&nbsp; If Verizon had paid the basic NYS income tax rate, they would have paid an additional $1.5 billion to the state between 2008-2010.</p><p>&nbsp;</p><p>Verizon recieved this tax subsidy by writing off the depreciation of their equipment, property and plant.&nbsp; The large amount of writeoffs are much larger or the federal governemnt than the state governemnt due to something called "bonus depreciation".&nbsp; The also spin off assets to a subsidiary, which is then merged into a third company.&nbsp; This is called the "Reverse Morris Trust".&nbsp; Due to the spinoff and merger, the transaction is tax-free, thus Verizon gets a huge , tax free dividend, even though they retain an ownership stake in the third company.</p><p>&nbsp;</p><p>Verizon also invests their money in lobbyists, accountants and politicians.&nbsp; In 2011, Verizon spent $16.6 million on stae and federal lobbying.&nbsp; Taxes were the second most lobbied issue after telecommunication by Verizon.&nbsp; Verizon paid $33.8 milion on the auditing firm Ernest &amp;Young in 2010.&nbsp; Although, Ernest and Young as a auditor is supposed to be independent, Verizon paid them $120,000 for lobbying, in 2010.&nbsp; Verizon also invests in federal politicians to the tune of $730,000 during the 2012 cycle.&nbsp; Over the last 20 years Verizon has donated over $20 million to politicians.&nbsp; These investments have definitely paid off in huge state and federal tax subsidies.</p><p>&nbsp;</p><p>Check out the photo gallery from the demonstration: <a href="/node/11219">Click Here.</a></p><p>&nbsp;</p><p>[[{"type":"media","view_mode":"drupalimc_large","fid":"2826","attributes":{"alt":"","class":"media-image","typeof":"foaf:Image"}}]]</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p>

<p>A rally was held at a local verizon location to bring attention to Verizon's abysmal record of paying state and federal income taxes.  Despite Verizon making profits of $33.4 billion between 2008-2010, Verizon paid only $866 million in NYS taxes or a rate of 2.6% and actually received a $951 million rebate from the federal government or a rate of -2.9%.  If Verizon had paid the basic NYS income tax rate, they would have paid an additional $1.5 billion to the state between 2008-2010.</p> <p> </p> <p>Verizon recieved this tax subsidy by writing off the depreciation of their equipment, property and plant.  The large amount of writeoffs are much larger or the federal governemnt than the state governemnt due to something called "bonus depreciation".  The also spin off assets to a subsidiary, which is then merged into a third company.  This is called the "Reverse Morris Trust".  Due to the spinoff and merger, the transaction is tax-free, thus Verizon gets a huge , tax free dividend, even though they retain an ownership stake in the third company.</p> <p> </p> <p>Verizon also invests their money in lobbyists, accountants and politicians.  In 2011, Verizon spent $16.6 million on stae and federal lobbying.  Taxes were the second most lobbied issue after telecommunication by Verizon.  Verizon paid $33.8 milion on the auditing firm Ernest &amp;Young in 2010.  Although, Ernest and Young as a auditor is supposed to be independent, Verizon paid them $120,000 for lobbying, in 2010.  Verizon also invests in federal politicians to the tune of $730,000 during the 2012 cycle.  Over the last 20 years Verizon has donated over $20 million to politicians.  These investments have definitely paid off in huge state and federal tax subsidies.</p> <p> </p> <p>Check out the photo gallery from the demonstration: <a href="/node/11219">Click Here.</a></p> <p> </p> <p><div class="media media-element-container media-drupalimc_large"><div id="file-2826" class="file file-video file-video-bliptv"> <h2 class="element-invisible"><a href="/file/2826">AYLtky4C</a></h2> <div class="content"> <div class="media-bliptv-outer-wrapper" id="media-bliptv-3" style="width: 620px; height: 480px;"> <div class="media-bliptv-preview-wrapper" id="media_bliptv_AYLtky4C_3"> <object width="620" height="480"> <param name="movie" value="http://www.blip.tv/v/AYLtky4C"></param> <param name="allowFullScreen" value="true"></param> <param name="wmode" value="transparent" /> <embed src="http://www.blip.tv/v/AYLtky4C" type="application/x-shockwave-flash" width="620" height="480" allowfullscreen="true"></embed> </object> </div> </div> </div> </div> </div></p> <p> </p> <p> </p> <p> </p>