Virginia taxpayers are footing Wal-Mart tax shelter
By: shenendoah
Published On: 2/28/2008 12:17:55 PM
It looks like Wal-Mart has been pulling a fast one on Virginia taxpayers. According to the Daily Press, Wal-Mart has been abusing a tax loophole that allows the retailing behemoth to evade over $6 million in taxes each year.
That's right -- As Virginia taxpayers struggle to make ends meet and the General Assembly searches for ways to bring spending into line, Wal-Mart is sitting on a fat $6.3 million tax cushion.
Wal-Mart is abusing a law that give businesses tax breaks on properties that they rent through a program called "Real Estate Investment Trusts." But as the Daily Press notes,
"Wal-Mart doesn't rent its buildings, of course. It owns them, but through a special subsidiary that rents them to another subsidiary that runs stores. No cash changes hands; one subsidiary's account is debited; another's is credited. But such a setup, Wal-Mart is able to reduce the taxes it pays in Virginia."
What could Wal-Mart's $6.3 million in tax breaks bring to Virginia? The Daily Press estimates 100 teachers, 50 police officers or 2,500 college scholarships for working-class families.
It's a shame that Wal-Mart is shorting Virgina. What will the General Assembly do about it?
Comments
Ugh! (Terry85 - 2/28/2008 5:28:58 PM)
Wal Mart makes me sick. I haven't even been in a Wal Mart in over three years and don't plan on going in one ever again. I wish Democrats would call them out and go after them a bit more.
I cross posted... (Terry85 - 2/28/2008 6:24:24 PM)
my post about this
on Daily Kos if anyone is interested.. Not going to repost it here on RK though since it's already been covered.
Awesome (shenendoah - 2/29/2008 6:00:57 PM)
Terry85 -- Awesome post on DK! I'm doing some work with Wake-Up Wal-Mart and I know we could always use more bloggers in the coalition. If you're interested, check out the
Wakeup Wal-Mart blog today to sign up.