Citibank has over 425 susidiaries listed as Corporate Tax Dodgers or Tax Havens in the USA and abroad.

The first sentence below should be enough to explain the huge deficit in the USA.KAS

http://pr.thinkprogress.org/2011/03/pr20110303/

CORPORATE TAX DODGERS:
As the Center on Budget and Policy Priorities (CBPP) found, "corporate tax revenues are now at historical lows as a share of the economy, at a time when the nation faces deficits and debt that are expected to grow to unsustainable levels." While the U.S. statutory tax rate of 35 percent is high compared to other countries, the effective tax rate -- the rate that corporations actually pay -- is quite low, due to the myriad loopholes and credits in the corporate tax code and the widespread use of corporate tax havens. In fact, the U.S. collects below the OECD average in corporate tax revenue. Many corporations, including Boeing, General Electric, and Wells Fargo, have paid nothing to the U.S. government in recent years. Other corporations, like Google, Pfizer, and Coca-Cola dramatically lower their effective tax rates, often by 20 points or more. Over the last three years, for instance, Google paid a 2.4 percent effective tax rate by sheltering its income in Ireland and countries in the Caribbean. According to the Government Accountability Office, Citigroup has 427 subsidiaries in identified tax havens, while Bank of America has 115, Morgan Stanley has 273, and Goldman Sachs has 29. The GAO actually found that 18,857 U.S. companies maintained a post office box in one five-story building in the Cayman Islands. According to Business and Investors Against Tax Haven Abuse, multinational corporations alone avoid $37 billion in taxes annually. As the CBPP noted, "the corporate tax now contributes considerably less to federal revenues than it once did: between 2000 and 2009, 10.7 percent of federal revenues were collected through the corporate tax, down from 29.8 percent of revenues in the 1950s."

CORPORATE TAX GIVEAWAYS:
In many instances, when corporations aren't exploiting weaknesses in the U.S. tax code, they are actively receiving subsidies from American taxpayers. For example, oil companies receive billions of dollars in taxpayer subsidies every year, even though the oil industry is hugely profitable: "The big five oil companies -- BP, Chevron, ConocoPhillips, ExxonMobil, and Shell -- made a total profit of nearly $1 trillion over the past decade." Former Shell Oil CEO John Hofmeister admitted earlier this month that oil companies do not need this money. "In the face of sustained high oil prices it was not an issue -- for large companies -- of needing the subsidies to entice us into looking for and producing more oil," Hofmeister said. And oil company subsidies are far from the only corporate giveaway. Cutting coal subsidies would save taxpayers $2.5 billion over ten years. The farm bill up for renewal in 2012 includes $30 billion in agriculture subsidies, much of which goes to big, profitable factory farms. As the Center for American Progress' Seth Hanlon pointed out, there are "special tax provisions that allow companies to choose the most favorable method for valuing their inventory and cost of goods sold. This is an inefficient and unnecessary subsidy for certain businesses." Changing these provisions could save taxpayers $61 billion over ten years.

PRO-TAX DODGING CONSERVATIVES:

Corporations are aided in their effort to bilk the taxpayer by complicit lawmakers in Congress. This week, every Republican member of the House (joined by 13 Democrats ) voted to preserve subsidies for the five largest oil companies. In fact, the Obama administration has been proposing to cut these subsidies since it came into office, only to be rebuffed by conservatives every time. A few Republicans -- including House Ways and Means Chairman Dave Camp (R-MI) and Rep. Jeb Hensarling (R-TX) -- have actually said that corporate tax dodging is proof that the corporate tax rate should be lowered. When asked by ThinkProgress if it was fair that Bank of America pays no federal corporate taxes, former Gov. Tim Pawlenty replied "the corporate tax rate in America is too high." House Republicans are so unconcerned about tax dodging that they have proposed cutting the Internal Revenue Services's budget by $600 million, even though "every dollar the Internal Revenue Service spends for audits, liens and seizing property from tax cheats brings in more than $10." IRS Commissioner Doug Shulman said that a $600 million cut in this year's budget "would result in the IRS collecting $4 billion less through tax enforcement programs." While they allow tax dodging to continue unabated, House Republicans have laid out spending cuts that would would gut important federal investments in special education, K-12 education for low-income students, federal job training, environmental protection, community health centers, infrastructure, programs that aid both pregnant women and newborns, and housing assistance for low-income veterans and long-term disabled people.