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 | 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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News Release | Illinois PIRG | Tax

Statement: JPMorgan Shouldn’t Get Tax Break for “London Whale” Settlement

JPMorgan could get a $35 million tax deduction from its $100 million settlement with Commodity Futures Trading Commission unless the regulator explicitly forbids it.

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News Release | Illinois PIRG Education Fund | Budget

New Report: Illinois Receives an “A-” in Annual Report on Transparency of Government Spending

Illinois received an “A-” when it comes to government spending transparency, according to “Following the Money 2013: How the States Rank on Providing Online Access to Government Spending Data,” the fourth annual report of its kind by the Illinois PIRG Education Fund. 

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News Release | Illinois PIRG Education Fund | Budget, Tax

Offshore Tax Dodging Blows a $2.5 Billion Hole in Illinois’ Budget

With Illinois in the midst of a budget crisis, the Illinois PIRG Education Fund, joined by the Small Business Advocacy Council; Gail Glasser, a small business owner; and the Chicago Political Economy Group, released a new study revealing that Illinois lost $2.5 billion due to offshore tax dodging in 2012. Many of America’s wealthiest individuals and largest corporations use tax loopholes to shift profits made in America to offshore tax havens where they pay little to no taxes.

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News Release | Illinois PIRG Education Fund | Budget

Chicago Receives a Grade of “A” for Spending Transparency

Chicago received a grade of “A” for conventional budgetary transparency, according to a new report released today by Illinois PIRG, but more work remains to be done to make TIF and privatization initiatives more transparent. The report reviews Chicago’s progress toward comprehensive, one-stop, one-click budget accountability and accessibility.

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News Release | Illinois PIRG | Tax

Report Exposes How Taxpayers Bear Cost of Corporate Settlements

A report released today spotlights a common practice where corporations that commit wrongdoing and agree to financial settlements with the federal government, go on to claim such settlement payments as tax-deductible business expenses. The new study, released by the Illinois Public Interest Research Group (Illinois PIRG), follows a record year of corporate settlements, while many more settlements relating to banking, environmental, and consumer safety issues are expected.

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News Release | Illinois PIRG | Budget

First Step to Avoid the Fiscal Cliff: Close Offshore Tax Loopholes

CHICAGO, December 6th – With Congress scrambling to agree on ways to reduce the deficit, the Illinois Public Interest Research Group joined with Naperville small business owner Mike Nikodem today to point out a clear first step to avoid the “fiscal cliff”: closing offshore tax loopholes. Many of America’s largest corporations and wealthiest individuals use accounting gimmicks to shift profits made in America to offshore tax havens, where they pay little to no taxes. This 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 | Budget, Tax

Shining a Light on Tax Increment Financing in Chicago

This report gives an initial snapshot of how well the Mayor’s office is doing in introducing transparency to tax increment financing (TIF) by examining how well critical information has been made available on the TIF transparency website.

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Report | Illinois PIRG Education Fund | Budget, Tax

Tax Shell Game

Tax havens are countries with minimal or no taxes, to which U.S.-based multinational firms or individuals transfer their earnings to avoid paying taxes in the United States. Users of tax havens benefit from access to America’s markets, workforce, infrastructure and security, but pay little or nothing for it—violating the basic fairness of the tax system.

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Report | Illinois PIRG Education Fund | Tax

Following the Money 2011

This report is Illinois PIRG Education Fund’s second annual ranking of states’ progress toward “Transparency 2.0” – a new standard of comprehensive, one-stop, one-click budget accountability and accessibility.

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Report | Illinois PIRG Education Fund | Budget, Tax

Privatization and the Public Interest

Chicago has been the most aggressive city in the United States in the privatization of public infrastructure. The problems resulting from parking meter privatization could have been avoided had Chicago followed common-sense principles regarding the privatization of public assets and provided the public with the ability to monitor and influence the privatization process

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