Tax

Letter to House Lawmakers Opposing H.J.Res.54

The FACT Coalition sent a letter to House lawmakers Friday urging them to oppose H.J.Res.54, a controversial measure which would repeal an important safeguard against offshore tax haven abuse—specifically, the practice of earnings stripping.

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Lawmakers Should Oppose Delaney’s Two Tax Giveaways

By Clark Gascoigne

“Partnership to Build America Act” and the “Infrastructure 2.0 Act” Would Exacerbate Offshore Tax Haven Abuse

The FACT Coalition sent two letters up to House lawmakers this week opposing a couple of egregious tax giveaways that are expected to be re-introduced by Rep. John Delaney (D-MD) in the near future.

Titled the “Partnership to Build America Act” and the “Infrastructure 2.0 Act”, both measures seek to offer multinational tax avoiders a reward under the premise that the measures might raise some revenue for infrastructure funding.  The question is: at what cost?

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Mnuchin’s Offshore Companies Underscore Need to Tackle Tax Havens in Tax Reform

Statement by FACT Deputy Executive Director Clark Gascoigne

WASHINGTON, D.C. – The offshore companies controlled by Treasury Secretary-designate Steven Mnuchin featured prominently in his Senate confirmation hearings held last week in Washington.  It was revealed that the former investment banker managed companies with assets in Anguilla and the Cayman Islands, both widely recognized as tax havens.

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A Conversation With Ecuador’s Foreign Minister on Tax Avoidance

Tax Avoidance, Illicit Financial Flows, and Global Development: A Call for a United Nations Tax Body

Thursday, January 12, 2016

Join the FACT Coalition and several other groups for a conversation with Foreign Minister Guilluame Long of Ecuador—as they take over the presidency of the G77 + China group of 134 developing nations—to discuss tax avoidance, illicit financial flows, and calls for a United Nations tax body.

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Briefing Memo: Tax Reform

Important Steps to Fix the Gaming of the Corporate Tax System

A common theme from both Democrats and Republicans in the recent election was the increasing problem that multinational companies are moving money and jobs offshore. These practices are encouraged by loopholes in the tax code, which encourage companies to move. These loopholes should be closed.

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Tax Haven Abuse: The Burden of the Middle Class

By Jacob Wills

On Tax Reform, Congressional Leaders Propose Widening Loopholes for Multinationals at Expense of Domestic Businesses and Middle Class Taxpayers

Much of the analysis of the 2016 election reflects on a middle class that feels overburdened.  While the economy has certainly improved since the recession, one thing has gotten worse that may be partially to blame—offshore tax haven abuse.  A new report from U.S. PIRG Education Fund finds that multinational companies dodge an estimated $147 billion in federal and state taxes annually through offshore tax haven loopholes, shifting that burden instead onto small businesses and individual taxpayers.  Titled “Picking Up the Tab 2016: Small Businesses Bear the Burden for Offshore Tax Havens,” the study estimates that each small business, on average, owes $5,186 more on its annual tax bill to collectively make up for the federal and state corporate tax revenue lost to offshore tax havens.

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Study Highlights How Rigged Tax Code Hurts Small Business, Middle Class Americans

Multinational Companies Dodging $147 Billion Annually in State and Federal Taxes through Offshore Tax Schemes

WASHINGTON, D.C. – A new report from U.S. PIRG Education Fund finds that multinational companies dodge an estimated $147 billion in federal and state taxes annually through offshore tax haven loopholes.  The report explains the staggering cost to small businesses and individual taxpayers, who are forced to shoulder the increased tax burden.

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Level the Playing Field: Tax Reform Americans Deserve

By Gary Kalman

As Congress Pursues Tax Reform, FACT Urges Lawmakers to Close Loopholes, Hold Large Companies Accountable, and Refrain from Disadvantaging Wholly Domestic and Smaller Businesses

Corporate tax reform is coming.  The central question is: what will it look like?  After a campaign in which both presidential candidates pledged to close loopholes that allow corporations to dodge taxes and stop companies from booking their profits overseas, is there the political will to do it?

One current proposal in Congress calls for a 0% tax on profits booked offshore.  Yes, the proposal is for 0%. That is not a typo.  Given the campaign rhetoric, that seems antithetical to cracking down on corporate tax dodging. But that hasn’t stopped Representative John Delaney (D-MD) from pushing a bill that would do just that.  Bad enough that House Speaker Paul Ryan (R-WI) and the President-elect have suggested giveaway-corporate-tax rates of between 8% and 10% on offshore profits — but the new starting point appears to be zero.

Sadly, the rate is only a part of the problem and, in some ways, the lesser of the evils. These proposals leave in place all of the loopholes that enable companies to move money and jobs overseas. They allow multinational companies to continue to defer paying taxes on profits booked offshore until the next giveaway — referred to in policy circles as a tax ‘holiday.’  These ‘holidays’ reward a small number of very large corporations — just 30 Fortune 500 companies hold 65% of the estimated $2.6 trillion in offshore profits — with a special tax rate (or no tax rate).  That leaves domestic companies, smaller businesses, and individuals to pick up the tab (and, it’s a large tab: Citizens for Tax Justice estimates that Fortune 500 companies now owe more than $700 billion in unpaid taxes on their earnings booked offshore).

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