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

Camp Corporate Tax Proposal Would Make Offshore Tax Dodging Easy for Large Multinationals

At a time when multinational giants are shifting profits offshore at an alarming rate to avoid billions in taxes, Chairman Camp’s bill would make our loophole-ridden corporate tax code even worse. Congress should take aggressive measures to crack down on tax haven abuse – like those put forth by Senator Levin in the Stop Tax Haven Abuse Act – instead of expanding the loopholes.

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

Drug Company’s $193M Settlement for Misconduct May Become Big Tax Write-Off

A new factsheet from the U.S. Public Interest Research Group documents how health care and pharmaceutical corporations are able to write off the payments they make to settle charges of wrongdoing, such as fraud, on their taxes.

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

Statement of Democracy Associate Emma Boorboor on U.S. PIRG’s comments to the IRS on its proposal on nonprofits’ candidate-related political activities

In the wake of the Supreme Court's Citizens United decision, the rules governing nonprofits' participation in political campaigns are more important than ever. We applaud the IRS's decision to address this problem head on, yet the initial proposal made by IRS missed the mark, and could cause real harm to the work of legitimate nonprofit organizations. We hope our comments to the IRS will encourage it to continue its important work to prevent abuse of the tax-exempt system by political operatives, while making improvements in the next round of drafting to encourage appropriate public engagement by nonprofits.

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

New Factsheet Outlines How Corporations Get Tax Write-Offs for Consumer Harm

A new factsheet from the U.S. Public Interest Research Group documents how corporations that have been charged with harming consumers through mortgage violations, price-fixing, racial discrimination and other charges have typically been able to write off the cost of their misdeeds on their taxes.

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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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News Release | U.S. PIRG | Tax

States could save $1 billion with simple, proven method to curb offshore tax dodging, new study finds

State taxpayers across the country could save over $1 billion from a simple reform to crack down on offshore tax dodging, according to a new report.

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News Release | U.S. PIRG | Budget

New Farm Bill Contains Massive Taxpayer Handouts To Big Ag, Last Minute Deal Removed Even Modest Taxpayer Savings

U.S. PIRG urges Congress to vote NO on the Farm Bill. At a time of supposed fiscal caution, this bill would put taxpayers on the hook for another five years of billion-dollar handouts to huge, profitable agribusinesses. Even the most modest reforms to trim subsidies for the largest players were stripped out or watered down at the last second by the chairs of the House and Senate Agricultural Committees.

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

Obama Plan to Close Corporate Loopholes, Invest in Infrastructure Promising, but Lacks Critical Details

In his State of the Union Address tonight, President Obama called for closing corporate tax loopholes and investing in infrastructure. His plan is promising, but lacks critical details.

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Media Hit | Tax

Elizabeth Warren's New Bill Could Save Taxpayers Billions

Last week, Sen. Elizabeth Warren (D-Mass.) introduced a bill with Sen. Tom Coburn (R-Okla.) that aims to make government settlements with corporations more transparent and fair. It could end up saving taxpayers billions of dollars.

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Media Hit | Tax

Bill would boost disclosures in corporate settlements with U.S.

Concerned that targets of federal investigations are getting off lightly, two senators proposed legislation requiring the government to disclose all the details about settlements that allow companies to duck trials on allegations of wrongdoing.

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

Loopholes for Sale

A new report by U.S. PIRG and Citizens for Tax Justice (CTJ) found that thirty unusually aggressive tax dodging corporations have made campaign contributions to 524 (98 percent) sitting members of Congress, and disproportionately to the leadership of both parties and to key committee members. The report, Loopholes for Sale: Campaign Contributions by Corporate Tax Dodgers, examines campaign contributions made by a total of 280 profitable Fortune 500 companies in 2006, 2008, 2010 and to date in 2012.

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Report | U.S. PIRG Education Fund | Budget

Following the Money 2012

This report is U.S. PIRG Education Fund’s third annual ranking of states’ progress toward “Transparency 2.0” – a new standard of comprehensive, one-stop, one-click budget accountability and accessibility. The past year has seen continued progress, with new states providing online access to government spending information and several states pioneering new tools to further expand citizens’ access to spending information and engagement with government.

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Report | WISPIRG | Budget

WISPIRG Report: Outsourcing Outrages

State leaders have proposed to end the existing requirement for proposals that privatize public functions to show cost-benefit advantages and report on results for Department of Transportation projects over $25,000.  Privatization in other states has sometimes saved the public money, but has often led to huge losses and other problems. Politicians may be enticed by the short-term cash offered by privatization, but citizens of Wisconsin deserve to know that there will not be larger long-term losses.

 

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

Representation Without Taxation

Marking the second anniversary of the Supreme Court’s decision in the Citizens United vs. Federal Election Commission case – which opened the floodgates to corporate spending on elections – this report takes a hard look at the lobbying activities of profitable Fortune 500 companies that exploit loopholes and work to distort the tax code to avoid billions of dollars in taxes.

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Report | U.S. PIRG Education Fund | Budget

Caution: Red Light Cameras Ahead

Privatized traffic law enforcement systems are spreading rapidly across the United States. As many as 700 local jurisdictions have entered into deals with for-profit companies to install camera systems at intersections and along roadways to encourage drivers to obey traffic signals and follow speed limits. Local contracting for automated traffic enforcement systems may sometimes be a useful tool for keeping drivers and pedestrians safe. But when private firms and municipalities consider revenues first, and safety second, the public interest is threatened.

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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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