Press

Just the FACTs: May 19, 2017

Profits booked offshore are growing at an even faster pace than previously predicted. Earlier this month, Apple made waves when it disclosed that of its more than $250 billion in cash worldwide, $239 billion is kept offshore.  Some of the growth in cash booked offshore is likely due to the perception that Congress and the administration are inching ever closer to a deal that would allow these companies to return the money at a steep discount.

One plan presented by Democratic Representative John Delaney equates to a corporate hand-out of nearly $550 billion.  In a recent blog, the Institute for Taxation and Economic Policy analyzes the plan disguised as a pay-for for infrastructure spending.  There is no doubt with a backlog of $836 billion in much-needed repairs, investments in infrastructure need more funding. However, as ITEP argues, this plan will only make the problem of inadequate revenue worse.

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Tax Plan Would Accelerate Offshore Tax Dodging

Statement by FACT Coalition on White House’s Tax Reform Outline

The Administration released an outline today of its plan to reform the corporate tax code.  The signature reform is a reduction of the corporate tax rate from 35% to 15%.

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On Tax Day, Tax Haven Lobby Advocating for Tax Cheats

Congress Should Reject Tax Haven Lobby’s Push to Repeal FATCA Transparency Measure

WASHINGTON, D.C. – As millions of Americans head to the post office today — this year’s deadline for filing individual tax returns — there is a stepped-up effort to make it easier for some to illegally evade paying their taxes.

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Just the FACTs: April 12, 2017

Last April, the world’s attention was captured by a global investigation revealing more than 11 million documents from a Panamanian law firm documenting a secret financial network reserved for the wealthy and corrupt.  Now, one year later, the “Panama Papers” was just awarded the prestigious Pulitzer Prize for Explanatory Reporting, while experts are reflecting on how far we’ve come and how much farther we really need to go.  There is no doubt that the “Panama Papers” release reverberated throughout the world, but—with the extent of the problem the information exposed—it’s clear not enough has been done.

In a statement marking the the anniversary, FACT’s Gary Kalman graded the global response to the Panama Papers a “C-”, calling the progress “more scattershot than comprehensive.”  Though some real progress has been made, more must be done, especially when it comes to ending the abuse of anonymous companies.  In a blog that followed, he further reflected on this past year and made a prediction for the future—saying he is optimistic that, by the next anniversary, our grade will improve.

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New Bill Ends Offshoring — Offering Sensible Tax Reform Template

The Tax Fairness and Transparency Act Puts Domestic Businesses and Middle-Class Taxpayers First

WASHINGTON, D.C. – New legislation introduced Thursday by Rep. Mark Pocan (D-WI) takes aim at the biggest offshore tax avoidance loopholes, offering a sensible template for tax reform, according to the Financial Accountability and Corporate Transparency Coalition (FACT Coalition).

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New Bills Take Aim at Offshore Tax Haven Abuse

Stop Tax Haven Abuse Act and Corporate EXIT Fairness Act Would Close Many of the Most Egregious Offshore Loopholes

WASHINGTON, D.C. – Congressional lawmakers introduced two measures Wednesday to close a number of offshore tax haven loopholes in a move welcomed by the Financial Accountability and Corporate Transparency Coalition (FACT Coalition).

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Large Companies Dodging $767 Billion in U.S. Taxes through Offshore Loopholes

ITEP Report Reveals Fortune 500 Companies Booking Record $2.6 Trillion in Untaxed Profits Abroad

WASHINGTON, D.C. – As Washington turns its attention to tax reform, a new report from the Institute on Taxation and Economic Policy underscores the immense scale of offshore tax avoidance: Fortune 500 companies have booked a record $2.6 trillion in profits offshore, allowing them to avoid up to $767 billion in U.S. taxes.

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Just the FACTs: March 24, 2017

The use of tax haven loopholes by multinational companies costs American taxpayers more than $130 billion per year.  Outright tax evasion by wealthy individuals drains an additional $35 billion annually.  At a time when budgets are being slashed and taxpayers are being asked to forgo much-needed services, Congress should be working to protect taxpayers with real tax reform that addresses the real problem.  Unfortunately, the proposed House tax reform blueprint doubles down on loopholes that facilitate the gaming of the tax code.

Even if the proposed House tax reform package were effective at ending the gaming — it isn’t — its effects on many would still be devastating.  According to the architect of the plan, Alan Auerbach, the blueprint’s currency adjustment will cause U.S. investments in foreign assets to plummet by 20%, at a cost of nearly $2 trillion.  Other researchers estimate the cost at nearly $5 trillion.

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