In an article written by Pallavi Gogoi for BusinessWeek.com, he draws the attentio of the public to the fact that Wal-Mart has increased into financial contributions into local and state politics with a view to evading tax payment. It has increased its political contributions in California, Florida, Illinois, Indiana, Michigan, North Carolina, Pennsylvania, and Texas in order to cut its corporate tax bill. This is confirmed by reports National Institute on Money in State Politics, nonpartisan, nonprofit groups based in Mont. It gives a list of notable figures that have been supported by the corporation including California Governor Arnold Schwarzenegger and Illinois state Senate President Emil Jones Jr. According to the report, Wal Mart has made other attempts to reduce its tax bill; one of such is be employing an accounting firm to work out strategies for that plan. This is confirmed by a report in The Wall Street Journal about a letter Wal-Mart sent in 2001 to accounting firms.
The report showed that the company desgined a major strategy to cut its tax payment, and deny states of taxes by ‘sponsoring candiates and commitees’ into positions that would decided for or against their operations in the state. It went ahead to employ a firm to employ implement its corporate tax reduction strategy. It is important to deduce from this that a number of other companies are also involved in such acts of either tacx evasion or reduction to suit heir programs, increase teir profit and possibly improve their investors’ patronage. These efforts call for a revision of laws in the affected nine states and also in other seemingly unaffected states with respect to organisations’ financial statement and their conmitant tax payment. Roles played by big organisations in politics and other public matters should be duly considered. Wal-Mart is one of those that use their ‘corporate responsibility’ to cheat the state and the public. This calls for immediate action.
Pallavi Gogoi, BUSINESSWEEK.COM
Wal-Mart Courts State Politicos:A new report shows that Wal-Mart has jacked up political contributions in states where it wants to reduce its tax bill.