Earlier this year, Amazon and Netflix made headlines when ITEP reported findings that these and at least 58 other companies paid no federal income taxes in 2018. One of the tax breaks they use to manage this feat is related to stock options, the subject of a new ITEP report.
Supporters of the Tax Cuts and Jobs Act might have hoped for a more celebratory first year anniversary. The public has not seen the kinds of benefits promised — few have seen anything close to $4000 raises, and real wage growth, accounting for inflation, continues to be sluggish. And despite surging corporate profits, the stock market took a tumble as other factors weigh heavy on the minds of investors. Even the board room celebrations are muted at best.
The FACT Coalition filed a comment on November 26, 2018 with the Internal Revenue Service (IRS) on proposed rules for the implementation of TCJA provisions. The full letter can be read below or downloaded here.
This week marks the one-year anniversary of the release of The Paradise Papers, a leak that included 13 million documents from a large offshore law firm. The leak detailed a number of tax avoidance techniques used by the wealthy and multinational corporations to avoid taxes. At the same time, Congress was rushing to pass the Tax Cuts and Jobs Act.
In light of the Paradise Papers revelations, we encouraged lawmakers to carefully review the information from the leak and consider whether their overhaul would address the tax dodging practices exposed. They chose not to do so.
Unlike the earlier Panama Papers story, where Americans were notably absent, the Paradise Papers had clear U.S. connections. There was extensive data on the tax avoidance schemes of at least 31,000 U.S. citizens, residents, and companies including household names like Apple, Nike, and Uber. Rather than consider lessons to be learned around how policies might work in practice, lawmakers chose to ignore the warning signs. The tax law passed just over a month later with minimal attention paid to any of the insights to be gleaned from the leak. It should not be surprising that the law continues to encourage multinational corporations to engage in offshore tax schemes.
The FACT Coalition sent a letter to the IRS on proposed rules for the implementation of TCJA provisions. The full letter can be read below or downloaded here.
The Financial Accountability and Corporate Transparency Coalition (FACT Coalition) sent a letter to House and Senate Committees on Appropriation calling for an additional $495 Million in funding for the IRS to Implement TCJA. The full letter can be read below or downloaded here.