Close Corporate Tax Loopholes

Across the country, some of the nation’s most prosperous people and companies — including GE, Google and Goldman Sachs — have avoided paying the taxes they owe, costing taxpayers $150 billion just last year.

TAX HAVENS COST US $150 BILLION A YEAR

No company should be able to game the tax system to avoid paying what it legitimately owes. And, yet, with atleast 83 of the nation's top 100 publicly traded companies establishing shell companies in offshore havens to avoid taxes, this is becoming more the rule than the exception. GE, Google, Goldman Sachs and dozens of others have created hundreds of phantom entities with nothing more than a clever tax attorney and P.O. box. 

Most recent academic studies estimate that about $150 billion in tax revenue is lost every year to offshore tax havens. The result? Cuts to public services, additional taxes today or additional debt to be paid by the next generation. 

It’s not illegal, but it’s not right.

Meanwhile . . . the average taxpayer paid $1,026 more to cover the billions that GE and others skipped out on last year, companies that don’t use these schemes keep struggling to compete with those that do, and state legislatures and Congress are considering deep cuts for essential public programs — from education, to health care, to clean air and drinking water.

We're being asked to tighten our belts and make sacrifices while giving the tax haven crew a free ride. U.S. PIRG is pushing for commonsense changes that simply say that if corporations are based here and generate profits here, then they should, like all of us who earn income here, pay the taxes they owe.

Issue updates

News Release | U.S. PIRG | Tax

Letter Rebuts Misleading Claims by Chamber of Commerce

U.S.PIRG organized this coalition letter to rebut a misleading letter from the U.S. Chamber of Commerce suggesting that Americans shouldn't know when federal agencies sign out-of-court settlements to resolve charges of corporate wrongdoing.

> Keep Reading
News Release | U.S. PIRG | Tax

U.S. PIRG COMMENDS THE BIPARTISAN TRUTH IN SETTLEMENTS ACT AS A WIN FOR AMERICAN TAXPAYERS

U.S. PIRG applauds a new bill that would shine a light on settlement deals made between federal agencies and corporations charged with misconduct. These settlement typically allow the corporations to make a payments instead of facing charges in a trial. The bill, cosponsored by Senators Lankford (R-OK) and Warren (D-MA), would require that when deals enable the corporation to use the settlement as a tax write off that reduces the value to the public, then this information must be publicly disclosed.

> Keep Reading
News Release | U.S. PIRG | Budget, Tax

Offshore Tax Havens Cost Small Businesses $3,244 a Year

As tax day approaches, it’s important to remember that small businesses end up picking up the tab for offshore tax loopholes used by many large multinational corporations. U.S. PIRG joined Senator Bernie Sanders, Bryan McGannon of the American Sustainable Business Council, and Bob McIntyre of Citizens for Tax Justice today to release a new study by the U.S. PIRG Education Fund revealing that the average small business owner in 2014 would have to pay an extra $3,244 in taxes to make up for the money lost in 2014 due to offshore tax haven abuse by large multinational corporations. 

> Keep Reading
Report | U.S. PIRG Education Fund | Budget, Tax

Picking Up The Tab 2015: Small Businesses Pay the Price for Offshore Tax Havens

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 liabilities 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 continue to avoid paying for these benefits.

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News Release | U.S. PIRG | Budget, Tax

Concrete, Fair Reforms Submitted to Senate Finance Committee Working Groups

The U.S. Public Interest Research Group today submitted comments to the Senate Finance Committee’s Business Income Tax and International Tax Working Groups, urging lawmakers to close corporate tax loopholes that allow multinational corporations to avoid U.S. tax. 

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Pages

News Release | U.S. PIRG | Tax

Letter Rebuts Misleading Claims by Chamber of Commerce

U.S.PIRG organized this coalition letter to rebut a misleading letter from the U.S. Chamber of Commerce suggesting that Americans shouldn't know when federal agencies sign out-of-court settlements to resolve charges of corporate wrongdoing.

> Keep Reading
News Release | U.S. PIRG | Tax

U.S. PIRG COMMENDS THE BIPARTISAN TRUTH IN SETTLEMENTS ACT AS A WIN FOR AMERICAN TAXPAYERS

U.S. PIRG applauds a new bill that would shine a light on settlement deals made between federal agencies and corporations charged with misconduct. These settlement typically allow the corporations to make a payments instead of facing charges in a trial. The bill, cosponsored by Senators Lankford (R-OK) and Warren (D-MA), would require that when deals enable the corporation to use the settlement as a tax write off that reduces the value to the public, then this information must be publicly disclosed.

> Keep Reading
News Release | U.S. PIRG | Budget, Tax

Offshore Tax Havens Cost Small Businesses $3,244 a Year

As tax day approaches, it’s important to remember that small businesses end up picking up the tab for offshore tax loopholes used by many large multinational corporations. U.S. PIRG joined Senator Bernie Sanders, Bryan McGannon of the American Sustainable Business Council, and Bob McIntyre of Citizens for Tax Justice today to release a new study by the U.S. PIRG Education Fund revealing that the average small business owner in 2014 would have to pay an extra $3,244 in taxes to make up for the money lost in 2014 due to offshore tax haven abuse by large multinational corporations. 

> Keep Reading
News Release | U.S. PIRG | Budget, Tax

Concrete, Fair Reforms Submitted to Senate Finance Committee Working Groups

The U.S. Public Interest Research Group today submitted comments to the Senate Finance Committee’s Business Income Tax and International Tax Working Groups, urging lawmakers to close corporate tax loopholes that allow multinational corporations to avoid U.S. tax. 

> Keep Reading
News Release | U.S. Public Interest Research Group | Tax

34 Thousand Tell Justice Dept: Deny BP Tax Write Off for Gulf Oil Spill

Today, the U.S. Public Interest Research Group delivered over 34,000 petitions to the Department of Justice calling on the agency to deny British Petroleum (BP) tax deductions for its remaining payments to address the 2010 Gulf Coast oil spill. A forthcoming decision to address BP’s liability under the Clean Water Act could earn the company a $4.9 billion tax windfall if the Justice Department signs an out-of-court settlement and fails to specify that the payments are non-deductible.

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Report | U.S. PIRG | Tax

Closing the Billion Dollar Loophole

New report tells how some states have found a simple reform to reclaim significant revenue lost to offshore tax havens. Includes estimates of how much each state loses in state revenue to offshore tax haven abuse and how much each state would gain by closing the "water's edge" loophole.

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Report | U.S. PIRG | Budget

Fact Sheet: End Tax Write-Offs for Wrongdoing

Fact sheet explains the issue and gives examples.

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Report | U.S. PIRG | Budget

Toward Common Ground: Bridging the Political Divide with Deficit Reduction Recommendations for Congress

To break through the ideological divide that has dominated Washington in recent years and offer a pathway to address the nation’s fiscal problems, National Taxpayers Union and U.S. PIRG joined together to identify mutually acceptable deficit reduction measures. This report documents our recommendations.

What follows is a general summary of recommendations that fall into four categories:

- $151.6 billion in savings from ending wasteful subsidies;

- $197.2 billion from addressing outdated or ineffective military programs;

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Report | U.S. PIRG | Tax

Offshore Shell Games

This study reveals that tax haven use is ubiquitous among the largest 100 publicly traded companies as measured by revenue. 82 of the top 100 publicly traded U.S. companies operate subsidiaries in tax haven jurisdictions, as of 2012. All told, these 82 companies maintain 2,686 tax haven subsidiaries.

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Report | U.S. PIRG | Budget, Tax

Picking Up the Tab 2013

Tax haven abuse costs the United States approximately $150 billion in tax revenues every year. Even when tax haven abusers act perfectly legally, they force other Americans to shoulder their tax burden. The average U.S. tax filer would need to pay $1,026 in additional taxes to make up for lost revenue from tax havens. To pick up the tab for the taxes avoided by multinational corporations, the average small business in the United States would need to pay an average of $3,067 each in additional taxes.

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Pages

Blog Post | Tax

CFPB Gets Results for Consumers...And Taxpayers, Too | Ed Mierzwinski

The CFPB's latest enforcement action against Bank of America resulted in $727 million of consumer refunds for unfair credit card practices. But taxpayers also benefited, since CFPB told BofA it could not take a tax writeoff on the $25 million civil penalty fine it also was required to pay.

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Blog Post | Budget

Our Taxpayer Dollars: Going to Waste and Wealthy Corporations | Jaimie Woo

 

Congress just passed a Farm Bill that will put taxpayers on the hook for another five years of billion-dollar handouts to huge, wealthy agribusinesses. Even the most modest reforms to trim subsidies were stripped out or watered down at the last second by the chairs of the House and Senate Agricultural Committees.

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Blog Post | Budget, Tax

Webinar for State Officials on Spending Transparency | Phineas Baxandall

U.S. PIRG Education Fund conducted a webinar with officials from 31 states on ways to improve online spending transparency.

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Blog Post | Tax

Four Reasons Lawmakers Are Scrutinizing How Companies Turn Settlements From Wrongdoing Into Tax Write Offs | Phineas Baxandall

When a company must pay a penalty for wrongdoing, should the public also shoulder a hidden subsidy for the corporation? Four factors are bringing this issue to a head.

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Blog Post | Tax, Transportation

Senate Transportation Bill Stretches Dollars by Ending Hidden Subsidies and Cracking Down on Tax Dodgers | Phineas Baxandall

The Senate transportation bill doesn't transform the way America invests in transportation, but it finds some good ways to save money and increase performance within an austerity budget

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PRIORITY ACTION

Some of the nation’s most prosperous people and companies — including GE, Google and Goldman Sachs — avoid paying the taxes they owe, costing taxpayers $150 billion just last year.

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