One of the best known farm equipment dealers is under fire from Capitol Hill. Caterpillar is accused of avoiding almost $2.5 billion in U.S. taxes by off-shoring profits in Switzerland.
Senate Permanent Subcommittee on Investigations Chair Carl Levin says even though Caterpillar manufactures parts in the U.S., stored products in U.S. warehouses, and shipped from U.S. ports the profits go to Switzerland. Levin calls it a tax strategy based on avoidance, he says it’s time to stop offshore profit-shifting.
Senator John McCain took a different stance. He says the U.S. has the highest corporate tax rate of any country in the world and that’s a factor in moving operations overseas. He calls for broad tax reform to promote growth.