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.


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 | Budget

U.S.PIRG advises for stronger standards to track state and local economic subsidies

The Government Accounting Standards Board (GASB) called for public comment on proposed rules for reporting on tax abatements that could require states and localities to achieve new levels of checkbook level transparency around economic development programs. Across the U.S. these programs represent tens of billions of dollars in subsidies, often granted with little transparency or accountability for results. In our comment letter to GASB, US PIRG made a few suggestions for amendments that would further strengthen the proposed GASB standards.

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Media Hit | Tax

How Much of Its Record Settlement Will S&P Write Off at Tax Time?

First comes the settlement. Next comes the tax write-off?

Standard & Poor’s Ratings Services on Tuesday announced a record $1.5 billion payout to resolve crisis-era lawsuits with the Justice Department, states and a pension fund over inflated residential mortgage deals. Collectively, the settlement total is 10 times larger than any other previously involving a credit-rating firm.

But how much of the unprecedented round of settlements could end up being written off?

Michelle Surka, a program associate with the nonpartisan consumer advocacy group U.S. Public Interest Research Group, said she thinks she has an answer based on an early analysis: about $290 million.

That’s about a $50 million break on state taxes but also the potential to write down $240 million of federal taxes owed in the more than dozen states involved in the settlement, Ms. Surka said.

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Media Hit | Tax

When Company Is Fined, Taxpayers Often Share Bill

U.S. PIRG analysis and quotes featured in the New York Times Business Day section.

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

Obama Budget Closes Tax Loopholes, Cuts Wasteful Spending, but Falls Short of Ending Offshore Tax Dodging

"President Obama’s budget deserves praise for closing egregious offshore tax loopholes and preventing companies with enough lawyers from using tax havens to get their tax bill down to zero. Unfortunately it fails to end the incentive for wealthy multinationals to take advantage of tax havens, and would fall short of putting an end to offshore tax dodging.

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News Release | U.S. PIRG | Budget

Statement on the President's State of the Union Address

The State of the Union address is the President's opportunity to articulate his priorities.  In a time of divided government, action on many of the President's priorities will require an agreement with Congress.  However, it is notable the range of issues raised by the President where he and his Administration can take action independent of Congress. We list our U.S. PIRG position on key highlights:

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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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Report | Illinois PIRG | Budget, Tax

Shining a Light on Tax Increment Financing in Chicago

This report gives an initial snapshot of how well the Mayor’s office is doing in introducing transparency to tax increment financing (TIF) by examining how well critical information has been made available on the TIF transparency website. Specifically, we looked at whether or not the City of Chicago is complying with the “TIF Sunshine Ordinance,” which was passed in April of 2009.

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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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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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