Close Corporate Tax Loopholes Updates

News Release | Illinois PIRG | Tax

Offshore Tax Havens Cost Average Illinois Taxpayer $1,396 a Year, Illinois Small Business $4,588

As hardworking Americans file their taxes today, it’s a good time to be reminded of how ordinary taxpayers pick up the tab for the loopholes in our tax laws. Illinois PIRG released a new study today entitled, “Picking up the Tab: Average Citizens and Small Businesses Pay the Price for Offshore Tax Havens” which revealed that the average Illinois taxpayer in 2013 would have to shoulder an extra $1,396 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals.

Report | Illinois PIRG | Tax

Picking Up the Tab 2014

Every year, corporations and wealthy individuals use complicated gimmicks to shift U.S. earnings to subsidiaries in offshore tax havens – countries with minimal or no taxes – in order to reduce their state and federal income tax liability by billions of dollars. Tax haven abusers benefit from America’s markets, public infrastructure, educated workforce, security and rule of law – all supported in one way or another by tax dollars – but they avoid paying for these benefits. Instead, ordinary taxpayers end up picking up the tab, either in the form of higher taxes, cuts to public spending priorities, or increases to the federal debt.

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.”

Report | Illinois PIRG | Tax

Picking Up The Tab

Some U.S.-based multinational firms and individuals avoid paying U.S. taxes by using accounting tricks to shift profits made in America to offshore tax havens—countries with minimal or no taxes. They benefit from their access to America’s markets, workforce, infrastructure and security; but they pay little or nothing for it—violating the basic fairness of the tax system and forcing other taxpayers to pick up the tab.

Even when tax haven abusers act perfectly legally, they force other Americans to shoulder their tax burden. Every dollar in taxes they avoid by using tax havens must be balanced by other Americans paying higher taxes, coping with cuts to government programs, or increasing the federal debt.

Academic studies conclude tax haven abuse costs the United States approximately $150 billion in tax revenues every year. Multinational corporations account for $90 billion and individuals the rest.

News Release | Illinois PIRG | Tax

Offshore Tax Havens Cost Average Illinois Taxpayer $1,058 a Year, Illinois Small Businesses $3,202

With Tax Day approaching, it’s a good time to be reminded of where our tax dollars are going. Illinois PIRG released a new study that revealed the average Illinois taxpayer in 2012 would have to shoulder an extra $1,058 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals.

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.

Tax havens are countries or jurisdictions with minimal or no taxes. Corporations and individuals shift earnings to financial institutions in these countries to reduce their U.S. income tax liability—costing the federal government $150 billion in lost revenues each year.

Federal taxpayers are not the only victims of offshore tax havens. Tax havens deprive state governments of billions of dollars in badly needed revenues as well. Based how much income is federally reported in each state, and on state tax rates, it is possible to calculate how much each of the state governments lose as a result of offshore tax dodging. In 2012, the state of Illinois lost $2.5 billion.

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.

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.

 

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.

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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