Tax

House Passes Bill that Offshores American Jobs and Profits

Bipartisan Voices Agree that H.R. 1 Will Increase Shifting of Production Overseas and Profits to Tax Havens

WASHINGTON, D.C. – The U.S. House of Representatives on Thursday passed the “Tax Cuts and Jobs Act” (H.R. 1) — legislation that will reward offshore tax haven abuse and increase the incentive to outsource American jobs abroad, according to the Financial Accountability and Corporate Transparency (FACT) Coalition.

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Shopping for a Tax Haven: How Nike and Apple Accelerated Their Tax Avoidance Strategies, according to the Paradise Papers

By Steve Diese

A year and a half after the release of the Panama Papers, a new set of data leaks, the Paradise Papers released by the International Consortium of Investigative Journalists (ICIJ) provides important new information on the tax dodging of wealthy individuals as well as multinational corporations.

The leaked data, about 13.4 million files in total, exposes the tax avoidance schemes and strategies of wealthy and powerful individuals, as well as large corporations. More than 7 million of the files were obtained from the offshore law firm Appleby. The 119-year-old firm is a leading member of the global network of lawyers, accountants, bankers and other operatives who set up and manage offshore companies and bank accounts for clients who want to avoid taxes or keep their finances under wraps.

It is no secret that corporations like Nike and Apple are holding billions of dollars offshore for tax avoidance purposes, but the Paradise Papers give us a deeper look into what these tax avoidance schemes look like, and show that Apple’s leadership has aggressively moved to reinvent these schemes while simultaneously proclaiming their innocence.

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Sen. Johnson (R-WI): Senate Tax Bill Incentivizes Offshoring of Jobs and Production

Coalition Welcomes Wisconsin Senator’s Remarks in Opposition to Tax Plan

WASHINGTON, D.C. — In announcing his opposition to the Senate tax plan Wednesday, Sen. Ron Johnson (R-WI) mentioned that the bill’s shift to a so-called “territorial” tax system — whereby corporations are not taxed on their offshore profits — is one of the things that concerns him.

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House Tax Plan Would Make Offshore Tax Avoidance Substantially Worse

By Richard Phillips

The release of the Paradise Papers has once again brought the issue of offshore tax avoidance to the forefront of public discussion. The papers expose the complex structures that companies such as Apple and Nike have pursued in recent years to pay little to nothing in taxes on their offshore earnings.

Yet even as these revelations make headlines, House Republicans are moving forward with major tax legislation, the Tax Cuts and Jobs Act, that would reward the worst tax avoiders and make it even easier for multinational companies to avoid taxes.

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House Guts Safeguard, Increases Offshoring Incentives in Tax Bill

FACT Coalition Spokespeople Available to Comment on Tax Bills and Paradise Papers

WASHINGTON, D.C. — The U.S. House Ways and Means Committee’s amendments to the proposed tax legislation Monday evening nearly eliminated a safeguard in the tax bill meant to discourage some shifting of profits offshore by multinational corporations according to a score by Congress’s Joint Committee on Taxation.

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New Offshore Leak Raises Concerns about House Tax Bill

Lawmakers Must Investigate How Proposed Legislation Will Address Offshore Loopholes Highlighted in New ‘Paradise Papers’ Leak

WASHINGTON, D.C. — A new leak of documents from an offshore law firm, published by an international network of news outlets Sunday, expose a number of tax avoidance techniques used by the wealthy and multinational corporations to avoid taxes.

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FACT Sheet: Offshore Tax Haven Abuse by the Numbers (November 2017)

$129 billion to $205 billion: Amount that U.S. taxpayers lose in federal revenue to offshore tax haven abuse each year.

  • $94 billion to $135 billion: Lost U.S. revenue from offshore profit shifting by multinational corporations annually.[i]
  • $35 billion to $70 billion: Lost U.S. revenue to tax evasion by wealthy individuals annually.[ii], [iii]
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FACT Sheet: Offshore Tax Haven Abuse (November 2017)

Middle-Class Taxpayers and Domestic Businesses Foot the Bill for Offshore Tax Loopholes

Many Large U.S.-Based Multinationals Avoid Paying U.S. Taxes by Using Accounting Tricks to Make Profits Made in America Appear to Be Generated in Offshore Tax Havens—Countries with Minimal or No Taxes.

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