Close Corporate Tax Loopholes

Across the country, some of the nation’s most prosperous people and companies — including GE, Google and Goldman Sachs — have avoided paying the taxes they owe, costing taxpayers $150 billion just last year.

TAX HAVENS COST US $150 BILLION A YEAR

No company should be able to game the tax system to avoid paying what it legitimately owes. And, yet, with atleast 83 of the nation's top 100 publicly traded companies establishing shell companies in offshore havens to avoid taxes, this is becoming more the rule than the exception. GE, Google, Goldman Sachs and dozens of others have created hundreds of phantom entities with nothing more than a clever tax attorney and P.O. box. 

Most recent academic studies estimate that about $150 billion in tax revenue is lost every year to offshore tax havensThe result? Cuts to public services, additional taxes today or additional debt to be paid by the next generation. 

It’s not illegal, but it’s not right.

Meanwhile . . . the average taxpayer paid $1,026 more to cover the billions that GE and others skipped out on last year, companies that don’t use these schemes keep struggling to compete with those that do, and state legislatures and Congress are considering deep cuts for essential public programs — from education, to health care, to clean air and drinking water.

We're being asked to tighten our belts and make sacrifices while giving the tax haven crew a free ride. Illinois PIRG is pushing for commonsense changes that simply say that if corporations are based here and generate profits here, then they should, like all of us who earn income here, pay the taxes they owe.

Issue updates

News Release | Illinois PIRG Education Fund | Budget

New Report: Illinois Receives a “B+” in Annual Report on Transparency of Government Spending

Illinois received a B+ when it comes to government spending transparency, according to “Following the Money 2014: How the 50 States Rate in Providing Online Access to Government Spending Data,” the fifth annual report of its kind by the Illinois Public Interest Research Group (PIRG) Education Fund.

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News Release | Illinois PIRG | Tax

Victory for Taxpayers and Consumers as Justice Dept. Denies Toyota $1.2 Billion Write-Off in Criminal Probe Settlement

Today, the Justice Department acted in the best interests of taxpayers and consumers, by denying Toyota a hidden $420 million tax benefit on its settlement for misleading consumers about dangerous car malfunctions. One line of text in the settlement made the difference: “Toyota agrees that it will not file a claim, assert, or apply for a tax deduction or tax credit.”

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News Release | Illinois PIRG Education Fund | Tax

Illinois could save $108 million with simple, proven method to curb offshore tax dodging, new study finds

A simple reform, which has already been proven effective in Montana and passed in Oregon, would require companies to treat profits booked to notorious tax havens as domestic taxable income.

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Report | Illinois PIRG | Tax

Closing The Billion Dollar Loophole

New report tells how some states have found a simple reform to reclaim significant revenue lost to offshore tax havens. Includes estimates of how much each state loses in state revenue to offshore tax haven abuse and how much each state would gain by closing the "water's edge" loophole.

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Pages

News Release | Illinois PIRG Education Fund | Tax

Illinois could save $108 million with simple, proven method to curb offshore tax dodging, new study finds

A simple reform, which has already been proven effective in Montana and passed in Oregon, would require companies to treat profits booked to notorious tax havens as domestic taxable income.

> Keep Reading
News Release | Illinois PIRG | Tax

Regulators Disallow Tax Deduction for JPMorgan’s $1.7 Billion Settlement, Saving Taxpayers Close to $600 Million

In a win for taxpayers, the $2 billion settlement with JPMorgan for its role in the Bernie Madoff Ponzi scheme will NOT be tax deductible, saving taxpayers as much as $595 million.

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News Release | Illinois PIRG | Tax

No Madoff Write-off For JPMorgan

Americans don’t deduct their parking tickets or library fines from their taxes. Corporations like JPMorgan shouldn’t be able to deduct their settlements for wrongdoing either.

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News Release | Illinois PIRG | Tax

Record-breaking JPMorgan Settlement Contains Protections for Taxpayers

The Department of Justice Specifically Disallows Tax Deductibility of JPMorgan’s $2 Billion Fine, Allows Deduction for Remainder of Settlement.

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Report | Illinois PIRG Education Fund & Frontier Group | Budget, Tax

The Hidden Cost of Offshore Tax Havens

When U.S. corporations and wealthy individuals use offshore tax havens to avoid paying taxes to the federal government, it is an abuse of our tax system. Tax haven abusers benefit from our markets, infrastructure, educated workforce, and security, but they pay next to nothing for these benefits. Ultimately, taxpayers must pick up the tab, either in the form of higher taxes, cuts to public spending priorities, or increased national debt.

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Report | Illinois PIRG Education Fund | Budget

Transparency in City Spending

The ability to see how government uses the public purse is fundamental to democracy. Transparency in government spending checks corruption, bolsters public confidence, improves responsiveness, and promotes greater effectiveness and fiscal responsibility.

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Report | Illinois PIRG Education Fund | Tax

Subsidizing Bad Behavior

BP’s recent $4.5 billion legal settlement with the Justice Department for its misdeeds in the Gulf oil spill was historic for being the largest ever criminal settlement. But it was historic for another reason as well—none of it is allowed to be tax deductible. Unfortunately, too many settlements for wrongdoing end up as tax deductions.

 

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Report | Illinois PIRG | Budget

What America Could Do With $150 Billion Lost to Tax Havens

Tax avoidance costs the federal government $150 billion in tax revenue each year. Illinois PIRG released new data illustrating the size of this loss with 16 dramatic initiatives for which the $150 billion could have paid and also by demonstrating the impact of this amount on the fiscal cliff.

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Report | Illinois PIRG | Tax

Jobs and TIF

Illinois PIRG’s report “Jobs and TIF: An Analysis of Job Creation and Tax Increment Financing” analyzes the records of 21 TIF-funded projects from the last decade with the biggest number of promised jobs – each project examined was required to create at least 200 jobs. The report checked to see whether the city is making sure developers are living up to their promises. 

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Blog Post | Food, Tax

Farm bill could sow seeds for obesity | Celeste Meiffren

When Congress turns to reauthorizing the federal Farm Bill this summer, you might think that only farmers should care. But in reality, the decisions they make impact all of us, because there’s a real risk Congress will maintain a broken status quo that lavishes taxpayer dollars on the junk food ingredients that are helping to fuel the obesity epidemic.

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Blog Post | Tax

Can we trust the Infrastructure Trust? | Celeste Meiffren

The City Council is set to vote on the creation of the Infrastructure Trust at the City Council meeting on April 18, 2012. But right now, the ordinance that creates the Trust lacks basic public protections.

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Blog Post | Budget

Budget Address: Close Corporate Tax Loopholes | Celeste Meiffren

In his budget address today, Governor Pat Quinn called for closing corporate tax loopholes, saying ‘For too long, we’ve had a revenue code that looks like Swiss cheese, with plenty of loopholes for the powerful." With tough budget decisions facing the State, closing tax loopholes that serve no public purpose, is the right thing to do...

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Blog Post | Tax

"PIRG Releases report on TIF in Chicago" | Celeste Meiffren

Our friends at Good Jobs First, the national leader in research on the impact of economic subsidies, blogged about our new report on tax increment financing (TIF) in Chicago...

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Blog Post | Tax

Will Rahm's TIF reforms go far enough? | Celeste Meiffren

Yesterday, Mayor Rahm Emanuel announced that he will be immediately implementing some of the reforms proposed by his Tax Increment Financing (TIF) Reform Panel five months ago. All of the proposed reforms are necessary to fix TIF and need to become law before more of our tax dollars are wasted.

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PRIORITY ACTION

Some of the nation’s most prosperous people and companies — including GE, Google and Goldman Sachs — avoid paying the taxes they owe, costing taxpayers $150 billion just last year.

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