News

U.S. Senator: Caterpillar Avoided Paying Billions in Taxes

U.S. Senator: Caterpillar Avoided Paying Billions in Taxes

Photo: Newsradio WTAX

U.S. Sen. Carl Levin says manufacturing giant Caterpillar Inc. has used an aggressive tax strategy to shift profits overseas in order to avoid paying billions in U.S. taxes.

The Michigan Democrat chairs the Senate Permanent Subcommittee on Investigations. The committee’s Democratic staff says in a report released Monday that Caterpillar avoided paying $2.4 billion in U.S. taxes since 2000 by shifting profits to a wholly-controlled affiliate in Switzerland.

The report raises questions about the validity of the tax strategy but does not accuse the Peoria based manufacturer of breaking the law.

Julie Lagacy, a Caterpillar vice president, said in a statement that the company complies with all tax laws. She said Caterpillar pays an effective income tax rate of 29 percent, among the highest for multinational manufacturers.

Recent Headlines

in Local

Sanitary District Wants $70m+ in Bonds for Plant Upgrades

Fresh
water

The Springfield Metro Sanitary District could need $70 million in bond money to pay for upgrades to the Sugar Creek Treatment Plant

in Local

Police Seek Sangamon Co. Fugitives

Fresh
crimestoppers_unknownpeople

Three fugitives who've stolen from a number of Springfield stores are being sought.

in Local

Cornel West Cancels U of I Appearance over Salaita

Fresh
university illinois

A prominent civil rights activist and academic has cancelled a speech at the University of Illinois because of the school's decision to rescind a job offer to a Native American studies professor.

in Local

Court Monitor Says IDOT Should Clean House on Hiring Rules

road construction

A federal court-appointed monitor has recommended that the Illinois Department of Transportation clean up its hiring rules.

in Local

Rauner Wants “Voter Empowerment”

Rauner Task Force

Gov. Bruce Rauner is using some new rhetoric as he brings his agenda to the public. What was once known…