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 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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Blog Post | Budget, Tax

The Country Has Spoken | Jaimie Woo

While the dust is still settling from the mid-term elections and the pundits are trying to figure out what it all means, the American people have made their collective voices heard and delivered a message that they do not like the country's direction. Exit polling data from Election Day showed clear majorities in against growing corporate influence on the political process and in favor of greater corporate accountability. The message is clear: inversions must stop, corporate tax avoidance must end, and special corporate loopholes must close.

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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 | 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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Media Hit | Tax

Too Big to Tax: Settlements Are Tax Write-Offs for Banks

“When people hear that this stuff is deductible, it just feels like adding insult to injury,” says Phineas Baxandall, a senior policy analyst and tax specialist at U.S. PIRG, a left-leaning consumer protection research group that has written reports on the tax deductions. “And when it’s not transparent, it’s shady.”

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Report | U.S. PIRG | Tax

Picking Up the Tab

Some U.S.-based multinational firms or individuals avoid paying U.S. taxes by transferring their earnings to tax haven countries with minimal or no taxes. These tax haven users benefit from their access to America’s markets, workforce, infrastructure and security; but they pay little or nothing for it—violating the basic fairness of the tax system and forcing other taxpayers to pick up the tab.

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Report | U.S. PIRG Education Fund | Budget, Democracy, Tax

Loopholes for Sale

A new report by U.S. PIRG and Citizens for Tax Justice (CTJ) found that thirty unusually aggressive tax dodging corporations have made campaign contributions to 524 (98 percent) sitting members of Congress, and disproportionately to the leadership of both parties and to key committee members. The report, Loopholes for Sale: Campaign Contributions by Corporate Tax Dodgers, examines campaign contributions made by a total of 280 profitable Fortune 500 companies in 2006, 2008, 2010 and to date in 2012.

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Report | U.S. PIRG Education Fund | Budget

Following the Money 2012

This report is U.S. PIRG Education Fund’s third annual ranking of states’ progress toward “Transparency 2.0” – a new standard of comprehensive, one-stop, one-click budget accountability and accessibility. The past year has seen continued progress, with new states providing online access to government spending information and several states pioneering new tools to further expand citizens’ access to spending information and engagement with government.

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Report | WISPIRG | Budget

WISPIRG Report: Outsourcing Outrages

State leaders have proposed to end the existing requirement for proposals that privatize public functions to show cost-benefit advantages and report on results for Department of Transportation projects over $25,000.  Privatization in other states has sometimes saved the public money, but has often led to huge losses and other problems. Politicians may be enticed by the short-term cash offered by privatization, but citizens of Wisconsin deserve to know that there will not be larger long-term losses.

 

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Report | U.S. PIRG Education Fund | Democracy, Tax

Representation Without Taxation

Marking the second anniversary of the Supreme Court’s decision in the Citizens United vs. Federal Election Commission case – which opened the floodgates to corporate spending on elections – this report takes a hard look at the lobbying activities of profitable Fortune 500 companies that exploit loopholes and work to distort the tax code to avoid billions of dollars in taxes.

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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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