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

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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Blog Post | Budget

End-of-year Traditions

After the disaster of a deal that privatized Chicago’s parking meters, there was a lot of talk of ensuring transparency and protections to make sure taxpayers never got ripped off again. Unfortunately, it looks as though the City Council is at it again — taking a short-term cash advance at the long-term expense of taxpayers and the public interest.

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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

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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News Release | Illinois PIRG Education Fund | Tax

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 2012: How the States Rank on Providing Online Access to Government Spending Data, the third annual report of its kind by the Illinois PIRG Education Fund.

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News Release | Illinois PIRG | Budget

Amendment Passes to Crack Down on Offshore Tax Cheats

A statement from Illinois PIRG on the passage of the Senate Amendment 1818, introduced by Senators Levin, Conrad, and Whitehouse to the Transportation Bill, which will stop foreign financial institutions in places like the Cayman Islands from aiding U.S. tax cheats.

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Media Hit | Tax

We want our money back

Good-governance groups are fighting back against companies that take state subsidies and then head out of town.

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News Release | Illinois PIRG | Budget

Facebook’s Tax Dodge Stands to Make Billions for Company and Zuckerberg

U.S. Senator Carl Levin isn’t necessarily the man you’d look to for the latest news about Facebook. However, today he broke some shocking news on the Senate floor about special tax favors that Facebook and its CEO, Mark Zuckerberg, will enjoy at great cost to the U.S. Treasury.

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News Release | Illinois PIRG | Tax

Progress Report: Promised Reforms to Protect Chicago Tax Dollars ‘Incomplete’

 

Yesterday, Mayor Rahm Emanuel announced that he will be immediately implementing some of the reforms proposed by his TIF Reform Panel five months ago. Today, watchdog group Illinois PIRG released a report on the need to fix TIF and called for all of the Mayor’s recommendations to become law.

 

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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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