Tax

The chains binding us to infinite growth

By | Michelle Surka
Director, Campaign for Budget Transparency

The taxes we pay don’t cover what it takes to run this country. That’s a serious problem, and not just because we’re spending beyond our means.In the coming year, the federal government will operate with a budget deficit of $985 billion — nearly one trillion dollars — and we may be looking at two-trillion-dollar deficits by 2028.

News Release | US PIRG Education Fund and Institute on Taxation and Economic Policy | Tax

Study: 73% of Fortune 500 Companies Used Offshore Tax Havens in 2016

A new study reveals the extent to which companies are using tax havens to avoid U.S. taxes and undermines the case for any tax proposal that would allow companies to repatriate their U.S. profits at a special low tax rate.

Report | US PIRG Education Fund & Institute on Taxation and Economic Policy | Tax

Offshore Shell Games 2017

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 in subsidiaries located in offshore tax haven countries with minimal or no taxes. Often a company’s operational presence in a tax haven may be nothing more than a mailbox.

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. 

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