Tax Loopholes Need Attention

In response to "Business Groups Oppose Tax Hikes"(C&EN, May 11, page 6), I remind readers that the effective tax rate of large corporations on domestic income is about 25%. Corporations, however, can markedly lower the rate on foreign income and even make taxable income disappear using offshore tax shelters and shifting income from one foreign subsidiary to another. Loopholes like these need to be modified or closed, because everyone, individual and corporation alike, should be paying their fair share. Maybe the headline should have read, "Business Groups Oppose Tax Fairness."

Harvey B. Herman
Greensboro, N.C.