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 | 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.

> 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.

> Keep Reading
News Release | U.S. Public Interest Research Group Education Fund | Budget

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 2015: 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, and even introduced entirely new state-of-the-art transparency sites with innovative features, while others are still barely achieving the minimum standards.

> Keep Reading

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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.

> Keep Reading
News Release | U.S. Public Interest Research Group Education Fund | Budget

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 2015: 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, and even introduced entirely new state-of-the-art transparency sites with innovative features, while others are still barely achieving the minimum standards.

> Keep Reading
News Release | US PIRG | Tax

Achtung Baby! German Bank Settlement Could Include $490 Million Loophole

As the German-based Commerzbank approaches a settlement agreement to resolve allegations surrounding the bank’s role in illegal money laundering with sanctioned states, the Justice Department will need to forbid tax deductions for this corporate wrongdoing or the bank will likely deduct the payments as an ordinary cost of doing business. In that case, ordinary taxpayers would ultimately shoulder up to $490 million of the deal.

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

Following the Money 2013

Every year, state governments spend tens of billions of dollars through contracts with private entities for goods and services, subsidies to encourage economic development, grants, and other forms of spending. Accountability and public scrutiny are necessary to ensure that state funds are well spent.

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

The Hidden Cost of Offshore Tax Havens

In 2011, states lost approximately $39.8 billion in tax revenues from corporations and wealthy individuals who sheltered money in foreign tax havens. Multinational corporations account for more than $26 billion of the lost tax revenue, and wealthy individuals account for the rest.

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

Transparency in City Spending

The ability to see how government uses the public purse is fundamental to democracy. Transparency in government spending checks corruption, bolsters public confidence, improves responsiveness, and promotes greater effectiveness and fiscal responsibility.

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

Subsidizing Bad Behavior

BP’s recent $4.5 billion legal settlement with the Justice Department for its misdeeds in the Gulf oil spill was historic for being the largest ever criminal settlement. But it was historic for another reason as well—none of it is allowed to be tax deductible. Unfortunately, too many settlements for wrongdoing end up as tax deductions.

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

What America Could Do With $150 Billion Lost to Offshore Tax Havens

Many corporations and wealthy individuals use offshore tax havens—countries with minimal or no taxes—to avoid paying $150 billion in U.S. taxes each year. By shielding their income from U.S. taxes, corporations and wealthy individuals shift the tax burden to ordinary Americans, who must pick up the tab in the form of cuts to public services, more debt, or higher taxes. The $150 billion lost annually to offshore tax havens is a lot of money, especially at a time of difficult budget choices. To put this sum in perspective, we present 16 potential ways that income could be used.

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Blog Post | Tax

What Do Jon Stewart, Elizabeth Warren, and Barack Obama Have In Common? | Dan Smith

All three of them spoke out this week against corporate tax dodging.

In his State of the Union speech, President Obama called for an economy where “everyone plays by the same set of rules” and where companies can’t avoid taxes by shifting profits overseas. That same night, Massachusetts Senate candidate Elizabeth Warren went on the Daily Show and called out 30 corporations that a recent U.S. PIRG and Citizens for Tax Justice study found paid more to lobby Congress than they did in federal income taxes. When Warren told this to John Stewart on the Daily Show, it made the usually unflappable comedian’s jaw drop.

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Blog Post | Tax

The "Dirty Thirty" Corporations that Spend More on Lobbying than Taxes | Phineas Baxandall

Two years ago the Supreme Court's misguided Citizens United decision struck down long-standing Congressional limits on the political power of large corporations by vastly expanding the legal metaphor that "corporations are people." Now there is fresh evidence that corporate influence over Congress makes it easy for those same corporations to avoid their civic duty of paying taxes.

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Blog Post | Budget

Problems With Privatized Law Enforcement's New Frontier | Phineas Baxandall

One in five Americans lives in a jurisdiction that outsources traffic ticketing this way, according to a newly released report from the U.S. Public Interest Research Group, titled "Caution: Red Light Cameras Ahead; The Risks of Privatizing Traffic Law Enforcement and How to Protect the Public." And a report released by the Justice Department suggests this trend may accelerate under the twin pressures of budget pressure and intense lobbying.

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Blog Post | Budget

How Much Did You Pay for Tax Dodging Corporations? | Phineas Baxandall

Yesterday, millions of Americans rushed to the post office to file their federal income tax returns. For all of us, the checks we wrote were an average of $434 higher because of the burden we are forced to shoulder for major corporations and wealthy individuals who use offshore tax havens to avoid paying their share.

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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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