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

BP Could Take $6.3 Billion Tax Deduction For Gross Negligence In Deepwater Horizon Spill

BP could claim a $6.3 billion tax windfall from settling charges of its gross negligence in the Deepwater Horizon disaster unless the EPA prevents it

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

Last week’s other big bank settlement also shifts burden to taxpayers

Goldman Sachs will be able to take a $420 million tax write off on the bank's FHFA settlement for its mortgage misdeeds. A similar settlement paid in 2010 to the SEC specifically prohibited such tax deductions.

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

Bank of America settlement loophole creates at least $4 billion burden for taxpayers

 The Justice Department allows Bank of America to write off most of its legal settlement for mortgage abuses as a tax deduction, shifting at least $4 billion back onto taxpayers.

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Media Hit | Tax

Bank of America’s $16 Billion Mortgage Settlement Less Painful Than It Looks

“The American public is expecting the Justice Department to hold the banks accountable for its misdeeds in the mortgage meltdown,” said Phineas Baxandall, an analyst with the U.S. Public Interest Research Group, a consumer advocacy organization. “But these tax write-offs shift the burden back onto taxpayers and send the wrong message by treating parts of the settlement as an ordinary business expense.”

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News Release | U.S. PIRG | Tax

Taxpayers could be burdened with Bank of America’s upcoming Justice Department settlement

To understand how significant the BoA settlement really is, people need to ask how many billions the bank is allowed to write off as tax deductions, and how much of the announced figure includes ‘fake costs’ — costs the bank would have incurred anyway to protect its bottom line.

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

New Bill: No Federal Contracts for Companies that Renounce American Corporate Citizenship to Dodge Taxes

"Changing your address on a piece of paper shouldn’t change your tax bill. Unfortunately, a loophole in our tax code allows American companies to renounce their American corporate citizenship to avoid paying U.S. taxes...at the very least, lawmakers shouldn’t reward this tax dodging gimmick by granting these companies federal contracts."

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News Release | U.S. PIRG | Tax

Justice Department Protects Taxpayers in BNP Settlement

Statement on the Justice Department's barring BNP Paribas from writing off its nearly $9 billion settlement as a tax deduction, saving taxpayers potentially more than $3 billion.

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News Release | U.S. PIRG | Tax

BNP Paribas Settlement Subsidy Could Cost Taxpayers $3 Billion

The giant bank will soon agree to a multi-billion-dollar payment to resolve charges that it hid $30 billion in wire transfers to terror countries, but the amount will depend on whether the Justice Department allows the bank to use the settlement as a huge tax break. 

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News Release | U.S. PIRG Ed Fund & Citizens for Tax Justice | Budget, Tax

Study: 70% of Fortune 500 Companies Used Tax Havens in 2013

Tax loopholes encouraged more than 70 percent of Fortune 500 companies to maintain subsidiaries in offshore tax havens as of 2013, according to “Offshore Shell Games,” released today by the U.S. PIRG Education Fund and Citizens For Tax Justice. Collectively, the companies reported booking nearly $2 trillion offshore for tax purposes, with just 30 companies accounting for 62 percent of the total, or $1.2 trillion.

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News Release | U.S. PIRG | Tax

Taxpayers Win, as Justice Department Blocks Credit Suisse Tax Write Off

The Justice Department saved taxpayers $233 million by preventing Credit Suisse bank from writing off its settlement for tax evasion. U.S. PIRG applauds the move and calls on agencies to make this standard practic. Agencies should also be more transparent about the deals they sign with corporations to resolve charges of wrongdoing.

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Report | MASSPIRG Education Fund | Budget

Massachusetts Stimulus Website: What It Tells Us & How It Could Tell Us More

This brief examines how Massachusetts has used its recovery website to provide information about ARRA spending – and describes additional strategies that could improve transparency.

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Report | CALPIRG Education Fund | Budget

California Budget Transparency 2.0

The ability to see how government uses the public purse is fundamental to democracy.  Budget transparency checks corruption, bolsters public confidence in government, and promotes fiscal responsibility. With the state in the midst of an historic budget crisis, it’s especially important for Californians to have easy access to information about the state’s expenditures. California has taken some steps towards better transparency, but still falls far short of the best practices established by other states.

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Report | CALPIRG Education Fund | Budget

California Budget Transparency 2.0

The ability to see how government uses the public purse is fundamental to democracy. Budget transparency checks corruption, bolsters public confidence in government, and promotes fiscal responsibility.

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Report | Illinois PIRG Education Fund | Budget

Privatization and the Public Interest

Chicago has been the most aggressive city in the United States in the privatization of public infrastructure. Chicago must adopt strong public interest protections and embrace greater government transparency before any further privatization of public assets takes place.

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Report | U.S. PIRG Education Fund | Tax

Tax Shell Game 2009

Many of the largest corporations in our country hide profits made in the United States in offshore shell companies and sham headquarters in order to avoid paying billions in federal taxes. The result is massive losses in revenue for the U.S. Treasury – which ultimately must be made up by taxpayers. 

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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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