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. 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.
Clark Gascoigne, the deputy director of the FACT Coalition, released the following statement:
“During this election cycle, we were told that the tax code is rigged. This report is exhibit A.
“For too long, lawmakers in Washington have used the tax code to pick winners and losers. Sadly, the ‘winners’ have been multinational companies that shift jobs and profits overseas, while the ‘losers’ are small businesses and middle-class Americans who are stuck with the bill.
“We are about to have a very public debate on corporate taxes. It’s important to remember that fixing the problems should include changes that level the playing field between domestic businesses and multinational companies. Real change must not, as we have seen in some proposals, double down on a two-tiered system that favors multinational over wholly domestic companies.”
Notes to Editors:
- Click here to read an HTML version of this press release.
- Read the press release from the U.S. PIRG Ed. Fund.
- Links to the full report are available here: HTML | PDF
- Read FACT Executive Director Gary Kalman’s Nov. 28, 2016 article on tax reform.
- Read FACT Executive Director Gary Kalman’s Oct. 10, 2016 op-ed in Tax Notes on the problems with a territorial tax system.
- Read a FACT Sheet on the problems with territorial tax systems.
+1 202 813-0290