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 | US PIRG | Tax

S&P Settlement Could Leave Taxpayers Partly Underwater Again

Standard & Poor’s (S&P), the bond-rating agency whose past practices have been tied to the mortgage crisis, is in negotiations with the U.S. Justice Department to settle allegations of civil fraud with a payout of over $1 billion. Unless the Justice Department specifically forbids it, the deal could allow S&P to claim the payment as a deductible business expense worth more than $350 million.

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News Release | US PIRG | Tax

New in the Huffington Post: 2014 Was the Year of Tax Write Offs for Corporate Crimes

New column in The Huffington Post from Michelle Surka, U.S. Public Interest Research Group (U.S. PIRG) Program Associate, analyzing this year’s large number of allowed tax deductions for corporate wrongdoing. 

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News Release | U.S. PIRG Education Fund | Tax

Looking Back at 2014: Year of Stocking Stuffers for Criminal Corporations

This was the year that billion-dollar settlements paid by corporations to atone for wrongdoing became normal -- and so many of those deals gave the corporations huge tax write offs at the expense of ordinary taxpayers.

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News Release | U.S. PIRG | Tax

Senator Coburn (R-OK) Slams Corporate Deductions of Legal Damages

Senator Coburn publishes a guide to American taxation that describes how Congress and federal agencies should prevent corporations accused of wrongdoing from writing off their out-of-court settlements as a tax deduction.

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News Release | U.S. PIRG | Tax

Tax deal to put grab bag of tax breaks on the nation's credit card

U.S. PIRG urged the Senate to reject the House’s proposed one-year retroactive tax extender package, which would add approximately $45 billion to the federal deficit, while overwhelmingly catering to special interests and failing to prioritize public benefits

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News Release | U.S. PIRG | Tax

Tax deal to put grab bag of tax breaks on the nation's credit card

U.S. PIRG urged the Senate to reject the House’s proposed one-year retroactive tax extender package, which would add approximately $45 billion to the federal deficit, while overwhelmingly catering to special interests and failing to prioritize public benefits

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

U.S. PIRG Urges Treasury Department to Expand Ruling on Inversions

 

Washington, D.C. – The U.S. Public Interest Research Group today submitted comments to a ruling issued by The Department of Treasury on corporate inversions. The guidance, released in September, laid out a number of reforms to curb inversions including regulations on “hopscotch” loans and “de-controlling” strategies.

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News Release | U.S. PIRG | Tax

Forex settlements prevent banks from writing off multi-billion dollar payments as tax deductions

The six banks that today announced out-of-court settlements with federal agencies to atone for manipulating foreign exchange markets won't be able to write off those payments as a tax-deductible business expense. Why isn't that always the case?

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News Release | U.S. PIRG | Tax

US regulators to strike forex settlement, but will they strike out tax deductions from the deal?

Federal agencies are preparing to settle with several big banks to resolve charges that they manipulated foreign currency exchange rates. Will those banks be allowed to write off the settlement payments as a tax deduction? If so, much of the costs of the payment will be shifted back onto taxpayers.

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News Release | U.S. PIRG | Tax

Statement from U.S. PIRG about agency attempts to toughen up bank settlements

Statement regarding indications some federal agencies may reopen old banking settlements, as reported in yesterday’s New York Times. The SEC is similarly reportedly delaying the final execution of August’s announced $16.65 billion settlement with Bank of America while deliberating about issuing waivers that would soften regulatory repercussions of the deal.

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Report | U.S. PIRG | Democracy, Tax

Who Slows the Pace of Tax Reforms?

As Congress considers a number of international tax reforms and loophole closing measures, the Administration and Congress have heard from many stakeholders. One of the more vocal groups has been the coalition called Promote America’s Competitive Edge, or PACE.  To better understand where opposition to reforms is coming from, U.S.

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Report | U.S. PIRG Education Fund | Tax

Tax Shell Game: How Much Did Offshore Tax Havens Cost You In 2010?

Tax havens are countries with minimal or no taxes, to which U.S.-based multinational firms or individuals transfer their earnings to avoid paying taxes in the United States. Users of tax havens benefit from access to America’s markets, workforce, infrastructure and security, but pay little or nothing for it—violating the basic fairness of the tax system.

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Report | U.S. PIRG Education Fund | Budget

Following the Money 2011

This report is our second annual ranking of states’ progress toward “Transparency 2.0” – a new standard of comprehensive, one-stop, one-click budget accountability and accessibility.

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Report | U.S. PIRG Education Fund | Budget

Toward Common Ground 2010

U.S. PIRG and National Taxpayers Union have joined together to propose a list of 30 specific recommendations to reform our future spending commitments. If enacted in their entirety, these changes would save taxpayers over $600 billion in total by 2015, the target date for the Fiscal Commission to reduce our publicly-held debt-to-GDP ratio to a more sustainable level of 60 percent.

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Report | U.S. PIRG Education Fund | Budget

The Next Trillion: Fiscal Responsibility Through More Accountability

To assist the work of the  President's National Commission on Fiscal Responsibility and Reform, U.S. PIRG looked at existing tax code for loopholes, reviewed government reports on wasteful contracting practices and crunched the numbers. We came up with an initial list of ways the government can save the first trillion dollars by enacting common sense policies that advance the public interest.

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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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