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

SAC Capital Shouldn’t Receive Tax Windfall for Insider Trading and Securities Fraud

SAC Capital could collect a massive tax windfall for the $1 billion it will reportedly pay to settle allegations of insider trading and securities fraud unless the SEC and other federal agencies explicitly forbid it.

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

Senator Levin Introduces Bill to Crack Down on Tax Haven Abuse

Senator Carl Levin (D-MI), joined by cosponsors Sheldon Whitehouse (D-RI), Mark Begich (D-AK), and Jeanne Shaheen (D-NH), introduced the Stop Tax Haven Abuse Act, which would save $220 billion over the next ten years. U.S. PIRG draws attention to the abuse by shipping more than 700 postcards to a Bank of American P.O. box in the Cayman Islands, a well-known tax haven. 

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

JPMorgan Shouldn’t Receive Tax Windfall for London Whale Penalty

Unless regulators forbid JPMorgan Chase from writing off an $800 million settlement as a tax deduction, taxpayers could end up shouldering 35 percent of the cost of the settlement.

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

Groups, Lawmakers Demand Cuts to Ag Subsidies, Deliver Petitions from 278,000 Citizens, 1,000 Small Farmers

Representatives Ron Kind (D-WI) and Tom Petri (R-WI) joined groups from across the political spectrum to deliver petitions and call on Congress to end subsidies to large agribusinesses, which are a part of the Farm Bill that is set to expire at the end of this month. 

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News Release | U.S. PIRG | Tax

Justice Department Settlements Last Month Could Leave Taxpayers Subsidizing $220 Million for Corporate Misdeeds

Taxpayers could end up shouldering up to $220 million in tax breaks as a result of eight settlements totaling close to $630 million that the Justice Department signed between July 30th and August 30th.

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

BP Trial Decision May Hinge on Tax Deductibility

The high-stakes negotiations between BP and the Justice Department may depend on how determined the Department is to protect taxpayers from subsidizing a settlement. In the past, agencies have allowed companies to write off legal settlements over wrongdoing as a tax deduction. Doing so forces taxpayers to ultimately foot the bill for these deductions. Every dollar these companies avoid paying gets made up through cuts to public programs, higher national debt, or increases to other taxes.

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Media Hit | Budget, Tax

Sacramento Bee: Tax Havens Let Billions Vanish Into Thin Air

Just how much state lawmakers across America shift the burden of supporting government off the wealthiest individuals and largest multinational corporations and down the income ladder is the focus of a pioneering analysis by the U.S. Public Interest Research Group Education Fund.

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

President Obama Poses Question: “Why Protect Special Interest Tax Breaks?”

Tonight, President Obama rightly called on Congress to close tax loopholes that allow wealthy special interests to shirk their tax burden at the expense of the public. The first loopholes to go should be those that allow corporations and wealthy individuals to use accounting gimmicks to stash their income in offshore tax havens.

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

New Legislation to Close Offshore Tax Loopholes Would Save Taxpayers $200 Billion

The CUT Loopholes Act would close a myriad of the most egregious offshore tax loopholes. This legislation is based on the premise that if a U.S. company earns profits here in the U.S., with the benefit of America’s educated workforce, infrastructure, and large consumer base, it should pay taxes in America, like small businesses and everyday taxpayers.

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

New Bill Will Stop Companies from Stashing Profits in Tax Havens, Raise $600 Billion in Tax Revenue

Ordinary taxpayers foot the bill for this corporate tax dodging in the form of cuts to public programs, more debt, or higher taxes. This legislation tackles the heart of the problem by ending incentives to shift profits offshore.

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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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