Caterpillar hearing morphs into tax-code debate

Caterpillar hearing morphs into tax-code debate
The Senate committee hearing was scheduled to focus on heavy machinery giant Caterpillar's avoidance of $2.4 billion in U.S. taxes by shifting profits to a wholly owned Swiss subsidiary.
But Tuesday's proceeding, held as Americans prepare for the annual April 15 tax-filing deadline, instead featured partisan debating points over the federal tax code and U.S. industry competitiveness.
For nearly five hours, Sen. Carl Levin, the Michigan Democrat who chairs the Permanent Subcommittee on Investigations, single-handedly grilled officials of Caterpillar and the company's accounting firm about the Switzerland tax strategy.
A report by the panel's Democratic majority staff concluded that the shift of $8 billion in international machinery-parts profits to the subsidiary was made possible by legal tax loopholes — though little changed with the manufacturer's parts business.
EARLIER: Report says Caterpillar avoided $2.4B in taxes
"Most of Caterpillar's parts executives are here, most of its parts employees are here, most of its parts are designed here, most of its parts are built here, most of its parts are stored here, most of its orders are filled here and most of its parts are shipped from here," said Levin. "Yet most of its international parts profits go to Switzerland."wholesale gowns cheap sexy babydoll