Wal-Mart Exploits Billion Dollar Tax Loophole (4/17/07)

RWDSU members at a tax day press conference which shed light on Wal-Mart's tax games, also attended by NYC Councilman Eric Gioia (center).

As U.S. taxpayers were filing their taxes on Tuesday, retail behemoth Wal-Mart was enjoying billions of dollars that should have gone into state tax coffers.
Outside of New York City's 24-hour post office, RWDSU members were part of a press conference to bring attention to Wal-Mart's tax dodge.
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According to a new analysis of corporate and state financial data by taxpayer advocacy group Citizens for Tax Justice, Wal-Mart has been able to avoid paying billions in taxes by paying rent to itself.
The study shows that by setting up fake "shell" companies, Wal-Mart is pretending to be its own landlord, paying itself the rent on its stores. By deducting the cost of rent on stores they actually own, Wal-mart avoids paying corporate income taxes on it. The scam has helped Wal-Mart avoid paying $3.39 billion in state taxes between 1999 and 2005.
For more on this issue please visit www.wakeupwalmart.com