Close Corporate Tax Loopholes

PERVASIVE TAX AVOIDANCE—Across the country, some of the nation’s best-known companies — including GE, Google and Goldman Sachs — have avoided paying the taxes they owe, costing Michiganders $3.1 billion last year.

LOOPHOLES COST Michiganders $3.1 BILLION

No company should be able to game the tax system to avoid paying what it legitimately owes. And, yet, establishing shell companies in offshore havens for the purpose of tax avoidance is becoming more the rule than the exception for at least 83 of the nation's top 100 publicly traded companies. 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.

The official estimate of how much Americans lose in tax revenue is $150 billion per year. That's money that is shouldered by average taxpayers, either through additional taxes today or additional debt to be paid by the next generation.

It’s not illegal, but it’s not right.

The result? The average taxpayer paid $674 more this year to cover the $150 billion that GE and others that use offshore tax havens skipped out on. And small businesses and companies that don’t use these schemes have to struggle to compete with those that do.

Meanwhile, the Michigan legislature and Congress are considering deep cuts for essential public programs — from education, to health care, to clean air and drinking water. They’re asking us to tighten our belts and make sacrifices, while giving the tax haven crew a free ride.

We are pushing for commonsense changes that simply say if corporations are based here and generate profits here, then they should, like all of us who earn income in here, pay the taxes they owe.

Issue updates

News Release | PIRGIM | Tax

MICHIGAN could save $18.9 million with simple, proven method to curb offshore tax dodging, new study finds

 

Michigan taxpayers could save $18.9 million from a simple reform to crack down on offshore tax dodging, according to a new report released today by PIRGIM. The reform, which has already been proven effective in Montana and passed in Oregon, would require companies to treat profits booked to notorious tax havens as domestic taxable income. 

> Keep Reading
Report | PIRGIM | Tax

Closing the Billion Dollar Loophole

New report tells how some states have found a simple reform to reclaim significant revenue lost to offshore tax havens. Includes estimates of how much each state loses in state revenue to offshore tax haven abuse and how much each state would gain by closing the "water's edge" loophole.

> Keep Reading
Report | PIRGIM Education Fund | Tax

Picking Up the Tab 2013

Some U.S.-based multinational firms and individuals avoid paying U.S. taxes by using accounting tricks to shift profits made in America to offshore tax havens—countries with minimal or no taxes. They 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.

> Keep Reading
Report | PIRGIM Education Fund | Tax

The Hidden Cost of Offshore Tax Havens

When U.S. corporations and wealthy individuals use offshore tax havens to avoid paying taxes to the federal government, it is an abuse of our tax system. Federal taxpayers are not the only victims of offshore tax havens. Tax havens deprive state governments of billions of dollars in badly needed revenues as well.

> Keep Reading
Report | PIRGIM Education Fund | Tax

Subsidizing Bad Behavior

BP’s recent $4.5 billion legal settlement with the Justice Department for its misdeeds in the Gulf oil spill was historic for being the largest ever criminal settlement. But it was historic for another reason as well—none of it is allowed to be tax deductible. Unfortunately, too many settlements for wrongdoing end up as tax deductions.

> Keep Reading

Pages

News Release | PIRGIM | Tax

MICHIGAN could save $18.9 million with simple, proven method to curb offshore tax dodging, new study finds

 

Michigan taxpayers could save $18.9 million from a simple reform to crack down on offshore tax dodging, according to a new report released today by PIRGIM. The reform, which has already been proven effective in Montana and passed in Oregon, would require companies to treat profits booked to notorious tax havens as domestic taxable income. 

> Keep Reading
News Release | PIRGIM | Tax

Flawed Farm Bill Heads Towards Senate Floor

The Senate is moving to vote on the farm bill, S.3240, that would continue the current system of agricultural subsidies to large, profitable, agribusiness.

> Keep Reading
News Release | PIRGIM | Tax

Offshore Tax Havens Cost Average Michigan Taxpayers $310 a Year, Each Michigan Small Business $1,561, New Study Finds

With tax day approaching, a new study released by PIRGIM found that the average Michigan taxpayer in 2011 would have to shoulder an extra $310 tax burden make up for revenue lost from corporations and wealthy individuals shifting income to offshore tax havens. The report additionally found that to cover the cost of corporate abuse of tax havens in 2011, small businesses in Michigan would have to foot a bill of $1,561 on average.

> Keep Reading
News Release | PIRGIM | Tax

White House Plan to Close Special Interest Tax Loopholes Is the Right Approach to Reform, But Details Matter

Statement by Meghan Hess, PIRGIM Program Associate, in response to the White House announcement today proposing to eliminate tax loopholes and preferences.

> Keep Reading
News Release | PIRGIM | Tax

New Legislation Would Close Corporate Tax Loopholes, Save Taxpayers $155 Billion

“The CUT Loopholes Act, introduced by Senators Carl Levin and Kent Conrad, goes a long way in making sure corporations play by the same rules as ordinary taxpayers."

> Keep Reading

Pages

Report | PIRGIM | Tax

Closing the Billion Dollar Loophole

New report tells how some states have found a simple reform to reclaim significant revenue lost to offshore tax havens. Includes estimates of how much each state loses in state revenue to offshore tax haven abuse and how much each state would gain by closing the "water's edge" loophole.

> Keep Reading
Report | PIRGIM Education Fund | Tax

Picking Up the Tab 2013

Some U.S.-based multinational firms and individuals avoid paying U.S. taxes by using accounting tricks to shift profits made in America to offshore tax havens—countries with minimal or no taxes. They 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.

> Keep Reading
Report | PIRGIM Education Fund | Tax

The Hidden Cost of Offshore Tax Havens

When U.S. corporations and wealthy individuals use offshore tax havens to avoid paying taxes to the federal government, it is an abuse of our tax system. Federal taxpayers are not the only victims of offshore tax havens. Tax havens deprive state governments of billions of dollars in badly needed revenues as well.

> Keep Reading
Report | PIRGIM Education Fund | Tax

Subsidizing Bad Behavior

BP’s recent $4.5 billion legal settlement with the Justice Department for its misdeeds in the Gulf oil spill was historic for being the largest ever criminal settlement. But it was historic for another reason as well—none of it is allowed to be tax deductible. Unfortunately, too many settlements for wrongdoing end up as tax deductions.

> Keep Reading
Report | PIRGIM Education Fund | Tax

What America Could Do with $150 Billion Lost to Offshore Tax Havens

By shielding their income from U.S. taxes, corporations and wealthy individuals shift the tax burden to ordinary Americans, who must pick up the tab in the form of cuts to public services, more debt, or higher taxes. The $150 billion lost annually to offshore tax havens is a lot of money, especially at a time of difficult budget choices. To put this sum in perspective, consider how it could be used.

> Keep Reading

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Priority Action

The CUT Loopholes Act would put an end to the price and profit shifting that allows publicly traded companies to engage in pervasive tax avoidance.

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