On Aug 01 2013, John D. (Jay) Rockefeller IV introduced legislation to close a tax loophole, currently exploited by the cruise industry, that has given cruise lines the ability to avoid paying U.S. income tax.
For the past seven years, Carnival and Royal Caribbean – which represent 71 percent of the global cruise industry – paid an effective worldwide tax rate of just 1.3 percent on more than $17 billion in profits. Because this figure includes foreign taxes, the cruise industry’s effective U.S. tax rate is actually much lower than 1.3 percent.
Rockefeller’s legislation would eliminate this outrageous exemption by requiring cruise lines to pay their fair share of taxes and support the federal resources on which they heavily rely.
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Read more at: Tax Times blog