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).
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).
FACT Coalition Statement on the One Year Anniversary of the Panama Papers Leaks
WASHINGTON, D.C. – Monday, April 3rd marks the one year anniversary of the leak of the “Panama Papers” — more than 11 million documents from a Panamanian law firm obtained by the International Consortium of Investigative Journalists (ICIJ).
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.
Since tax dodging via tax havens and other methods would continue among the largest players, it seems misleading to say to the public that the House plan would end the gaming.
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.
