Tax

News Release | U.S. PIRG | Tax

New Bill Closes Biggest Corporate Tax Loopholes, Offers Commonsense Tax Reform Solutions

Statement from U.S. PIRG Tax and Budget Advocate Michelle Surka on Rep. Pocan’s New Bill to Close Corporate Tax Loopholes:

News Release | U.S. PIRG | Tax

New Bills Introduced To Curb Offshore Tax Avoidance, End Tax Gimmicks

Washington, D.C. – Today, Representative Lloyd Doggett (D-TX) introduced the Corporate EXIT Fairness Act and the Stop Tax Haven Abuse Act along with co-sponsor Sheldon Whitehouse (D-RI). These bills would close a number of loopholes that let corporations and wealthy individuals book income to offshore tax havens to avoid taxes. The Joint Committee on Taxation calculates that this legislation would save taxpayers over $250 billion.

News Release | U.S. PIRG | Tax

U.S. PIRG Applauds Bipartisan Bill Barring Tax Write-offs for Corporate Wrongdoing

Washington, D.C. – Statement by Michelle Surka U.S. Public Interest Research Group Tax and Budget Program Advocate, on legislation introduced today by U.S. Sens. Jack Reed (D-RI) and Chuck Grassley (R-IA) that would prevent corporate wrongdoers from reaping massive tax windfalls from the payments made to settle allegations of criminal wrongdoing.

News Release | U.S. PIRG Education Fund | Tax

Offshore Tax Havens Cost Small Businesses on Average $5,128 a Year

Small businesses in the U.S. have to shoulder, on average, an extra $5,128 in taxes to make up for the revenue lost due to the abuse of offshore tax havens by multinational corporations, according to a new report by U.S. Public Interest Research Group Education Fund. As a new administration takes office and the possibility of tax reform again enters the national conversation, the report highlights how it’s small domestic businesses and ordinary Americans that have to shoulder the burden of multinational tax avoidance.

Report | U.S. PIRG Education Fund | Budget, Tax

Picking Up the Tab 2016

Every year, corporations and wealthy individuals use complicated gimmicks to shift U.S. earnings to subsidiaries in offshore tax havens – countries with minimal or no taxes – in order to reduce their federal and state income tax liability by billions of dollars. While tax haven abusers benefit from America’s markets, public infrastructure, educated workforce, security and rule of law – all supported in one way or another by tax dollars – they avoid paying their fair share for these benefits.

Small business owners are hit twice by the effects of tax dodging by large multinational corporations. Small businesses are placed at a competitive disadvantage because they rarely have subsidiaries in tax havens and the armies of tax lawyers and accountants necessary to exploit the loopholes that come with such subsidiaries. Meanwhile, nearly 73% of Fortune 500 companies operate subsidiaries in tax haven countries. Small businesses are forced to compete with multinational corporations based on the cleverness of their tax gimmicks rather than on their innovation or quality of product.

As a result, these small businesses, which pay their taxes without the loopholes, end up picking up the tab for offshore tax avoidance in the form of higher taxes, cuts to public programs, or increases to the federal debt.

The United States loses approximately $147 billion in federal and state revenue each year due to corporations using tax havens to dodge taxes. This report calculates the extent that tax responsibilities would be shifted to small businesses in each state if that business sector picked up the tab  – divided equally among the small businesses.

▪     The federal government loses $128.5 billion in corporate tax revenue due to tax haven abuse. Every small business would need to pay an additional $4,481 in federal taxes to account for the revenue lost.

▪     Corporate tax haven abuse costs state governments an estimated $18.5 billion in lost tax revenue. Small businesses across the country would have to pay on average an additional $647 to make up for the lost state taxes.

▪     Because state corporate tax rates vary considerably, small businesses in some states would have to pay as much as $2,520 to make up for state tax revenue lost to tax haven abuse.

 

 

News Release | U.S. PIRG | Tax

U.S. PIRG Statement on Treasury Rule to Limit Corporate Tax Avoidance

Statement from U.S. PIRG advocate Michelle Surka on new Treasury Department rule to limit multinational corporate tax avoidance:Statement from U.S. PIRG advocate Michelle Surka on new Treasury Department rule to limit multinational corporate tax avoidance.

 

News Release | U.S. PIRG Education Fund | Tax

Study: 73% of Fortune 500 Companies Used Tax Havens in 2015

In 2015, more than 73 percent of Fortune 500 companies maintained subsidiaries in offshore tax havens, according to “Offshore Shell Games,” released today by the U.S. PIRG Education Fund, Citizens for Tax Justice and the Institute on Taxation and Economic Policy. Collectively, multinationals reported booking $2.5 trillion offshore, with just 30 companies accounting for 66 percent of this total. By indefinitely stashing profits in offshore tax havens, corporations are avoiding up to $717.8 billion in U.S. taxes. 

Report | U.S. PIRG Education Fund | Budget, Tax

Offshore Shell Games 2016

U.S.-based multinational corporations are allowed to play by a different set of rules than small and domestic businesses or individuals when it comes to paying taxes. Corporate lobbyists and their congressional allies have riddled the U.S. tax code with loopholes and exceptions that enable tax attorneys and corporate accountants to book U.S. earned profits to subsidiaries located in offshore tax haven countries with minimal or no taxes. The most transparent and galling aspect of this is that often, a company’s operational presence in a tax haven may be nothing more than a mailbox. Overall, multinational corporations use tax havens to avoid an estimated $100 billion in federal income taxes each year.

The UK and Australia have already agreed to disclose the true owners of anonymous shell companies. It's time for the United States to get serious about incorporation transparency. 

News Release | U.S. PIRG Education Fund and Frontier Group | Tax

Following the Money 2016: New Report Ranks All Fifty States on Government Spending Transparency

Government spending transparency is improving, but many states still lag far behind, according to “Following the Money 2016: How the 50 States Rate in Providing Online Access to Government Spending Data,” the sixth annual report of its kind by the U.S. Public Interest Research Group Education Fund. Some states have improved their spending transparency web portals significantly, earning perfect scores in this year’s report, while others are still barely achieving the minimum standards.

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