As the Washington out east ponders budget balancing, the Oregon State Public Interest Research Group is suggesting some ways to raise $150 billion, painlessly for most us, by hitting offshore tax dodges. Regulatory devices that are legal (the lobbyists make sure of that), but that many taxpayers probably would deem unfair.
From OSPRIG's email this morning ...
With Congress scrambling to agree on ways to reduce the deficit, OSPIRG released a new analysis, pointing out a clear first step to avoid the “fiscal cliff”: closing offshore tax loopholes. Many of America’s largest corporations and wealthiest individuals use accounting gimmicks to shift profits made in America to offshore tax havens, where they pay little to no taxes. This tax avoidance costs the federal government $150 billion in tax revenue each year. OSPIRG’s new data illustrates the size of this loss with 16 dramatic ways $150 billion could be spent.
“When corporations skip out on their taxes, the rest of us are left to pick up their tab.” said Celeste Meiffren, Consumer and Taxpayer Advocate with OSPIRG. “Right now, this kind of tax dodging is perfectly legal, but it’s not fair and it’s time to put an end to it.”
At least 83 of the top 100 publically traded corporations in the U.S. make use of tax havens, according to the GAO. American companies like Wal-Mart, Coca Cola, and Pfizer – which benefit from our educated workforce, infrastructure, and security – keep more than 70% of their cash offshore. Thirty of America’s largest, most profitable corporations actually made money off our tax code between 2008 and 2010 by avoiding taxes altogether and receiving tax rebates from the government. By using offshore tax havens, corporations and wealthy individuals shift the tax burden to ordinary Americans, forcing us make up the difference through cuts to public services, a bigger deficit, or higher taxes for everyday citizens.
To illustrate the size of the revenue lost each year to tax havens, OSPIRG presented 16 specific ways it could be spent, in a fact sheet released today, titled “What America Could Do With $150 Billion Lost to Tax Havens.” Examples include: (more…)