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

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.

> Keep Reading
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.

> Keep Reading
Media Hit | Tax

Charlotte Observer top article features settlement loophole

Feature article quotes U.S. PIRG to discuss how banking giant may leave taxpayers with part of the bill for their mortgage abuses.

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

Bipartisan Bill to Expose Tax Write-Offs for Corporate Wrongdoing Clears Committee

U.S. PIRG applauds the Homeland Security and Government Affairs Committee for approving the bipartisan Truth in Settlements Act. Thanks to a loophole in the law, companies paying out-of-court settlements to federal agencies can often deduct part of the cost from their tax bill as an ordinary business expense. This important bipartisan legislation would take the critical step of requiring the terms of these deals to be made public.

> Keep Reading
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."

> Keep Reading

Pages

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.

> Keep Reading
Media Hit | Tax

Charlotte Observer top article features settlement loophole

Feature article quotes U.S. PIRG to discuss how banking giant may leave taxpayers with part of the bill for their mortgage abuses.

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

Bipartisan Bill to Expose Tax Write-Offs for Corporate Wrongdoing Clears Committee

U.S. PIRG applauds the Homeland Security and Government Affairs Committee for approving the bipartisan Truth in Settlements Act. Thanks to a loophole in the law, companies paying out-of-court settlements to federal agencies can often deduct part of the cost from their tax bill as an ordinary business expense. This important bipartisan legislation would take the critical step of requiring the terms of these deals to be made public.

> Keep Reading
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."

> Keep Reading
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.

> Keep Reading

Pages

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;

> Keep Reading
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.

> Keep Reading
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.

> Keep Reading
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.

> Keep Reading
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.

> Keep Reading

Pages

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

> Keep Reading
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.

> Keep Reading
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.

> Keep Reading
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.

> Keep Reading
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.

> Keep Reading

Pages

View AllRSS Feed

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.

Consumer Alerts

Join our network and stay up to date on our campaigns, get important consumer updates and take action on critical issues.

Support Us

Your donation supports U.S. PIRG’s work to stand up for consumers on the issues that matter, especially when powerful interests are blocking progress.