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

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
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. 

> Keep Reading

Pages

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.

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

House Tax Writers Vote to Make Offshore Loopholes Permanent

House tax writers voted to renew and making permanent two expired offshore tax loopholes, forcing average taxpayers and small business owners to pick up the tab for tax dodging by many multinationals for years to come. For all of the talk in Washington about getting our fiscal house in order, the Committee did not consider how to pay for these expensive tax breaks.

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

Poll: Public Wants Federal Agencies to Disclose and Restrict Corporate Tax Write Offs for Out-of-Court Settlements

A new poll shows that Americans want federal agencies to better disclose information about out-of-court settlements with corporations and to restrict companies from writing off these payments as tax deductions.

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

Offshore Tax Havens Cost Average Taxpayer $1,259 a Year, Small Businesses $3,923

Calculating how much federal and state taxes average tax filers and small businesses would pay to pick up the tab for the billions of revenue lost as a result of offshore tax havens.

> Keep Reading
News Release | U.S. PIRG Education Fund | Budget, Tax

New Report Ranks Transparency of Government Spending in the 50 States

Most states are improving the transparency of government spending, but some do a much better job than others.

> Keep Reading

Pages

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.

> Keep Reading
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.

> Keep Reading
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.

> Keep Reading
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. 

> Keep Reading
Report | U.S. PIRG Education Fund | Budget, Transportation

Economic Stimulus or Simply More Misguided Spending?

President-elect Obama has declared that the next recovery plan must do more than just pump money into the economy. It will also create the infrastructure that America needs for the 21st century. This fall, Congress asked states to submit lists of “ready-to-go” transportation infrastructure projects that could be funded by the stimulus package.

> 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.
Optional Member Code

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.