The state of Florida pension fund lost hundreds of millions of dollars after managers invested employee pension funds in Enron. Corporate scandals have taken money directly out of the pockets of millions of Americans. The Institute for AmericaÃ¢â‚¬â„¢s Future has found that individual retirement accounts have lost over $175 billion. American Family Voices has determined that public pension funds across America have lost at least $6.4 billion. And over one million workers have lost their jobs as their looted companies tumbled into bankruptcy.
Current corporate accounting practices have also cost the treasury billions of dollars in tax revenue, as the trend of reporting high profits to shareholders and low profits to the IRS is on the rise. Using data provided by the Institute on Taxation and Economic Policy, American Family Voices looked at a mere 11 companies and found close to $13 billion that went uncollected due to this practice. Our guests today, Darla Scaife and Bill Newton of the Florida Consumer Action Network discussed efforts to have greater accountibility over pension funds and public investments.