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. ConnPIRG 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 | ConnPIRG Education Fund | Budget

Malloy Administration Executive Orders are a “strong start” on Connecticut Transparency, though More Work Remains

An examination of the content and implementation of two executive orders issued by Governor Malloy intended to increase government transparency

> Keep Reading
Report | ConnPIRG Education Fund | Budget

Revealing Tax Subsidies and CT Open Data

An examination of the content and implementation of two executive orders issued by Governor Malloy intended to increase government transparency

> Keep Reading
News Release | ConnPIRG Education Fund | Tax

Study: 70% of Fortune 500 Companies Used Tax Havens in 2013

Tax loopholes encouraged more than 70 percent of Fortune 500 companies – including General Electric, United Technologies and Priceline.com in Connecticut – to maintain subsidiaries in offshore tax havens as of 2013, according to “Offshore Shell Games,” released today by ConnPIRG Education Fund and Citizens for Tax Justice. Collectively, the companies reported booking nearly $2 trillion offshore for tax purposes, with just 30 companies accounting for 62 percent of the total, or $1.2 trillion.

> Keep Reading
Report | ConnPIRG Education Fund | Tax

Offshore Shell Games 2014

Many large U.S.-based multinational corporations avoid paying U.S. taxes by using accounting tricks to make profits made in America appear to be generated in offshore tax havens – countries with minimal or no taxes. By booking profits to subsidiaries registered in tax havens, multinational corporations are able to avoid an estimated $90 billion in federal income taxes each year. These subsidiaries are often shell companies with few, if any employees, and which engage in little to no real business activity. 

> Keep Reading
News Release | ConnPIRG | Tax

Offshore Tax Havens Cost Average Connecticut Taxpayer $2,537 a Year, Connecticut Small Business $8,094

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.  Every year, corporations and wealthy individuals avoid paying an estimated $184 billion in state and federal income taxes by shift their profits to offshore tax havens. 

> Keep Reading

Pages

News Release | ConnPIRG Education Fund | Budget

Malloy Administration Executive Orders are a “strong start” on Connecticut Transparency, though More Work Remains

An examination of the content and implementation of two executive orders issued by Governor Malloy intended to increase government transparency

> Keep Reading
News Release | ConnPIRG Education Fund | Tax

Study: 70% of Fortune 500 Companies Used Tax Havens in 2013

Tax loopholes encouraged more than 70 percent of Fortune 500 companies – including General Electric, United Technologies and Priceline.com in Connecticut – to maintain subsidiaries in offshore tax havens as of 2013, according to “Offshore Shell Games,” released today by ConnPIRG Education Fund and Citizens for Tax Justice. Collectively, the companies reported booking nearly $2 trillion offshore for tax purposes, with just 30 companies accounting for 62 percent of the total, or $1.2 trillion.

> Keep Reading
News Release | ConnPIRG | Tax

Offshore Tax Havens Cost Average Connecticut Taxpayer $2,537 a Year, Connecticut Small Business $8,094

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.  Every year, corporations and wealthy individuals avoid paying an estimated $184 billion in state and federal income taxes by shift their profits to offshore tax havens. 

> Keep Reading
Media Hit | Budget

Report: Connecticut’s Fiscal Transparency Improves

Connecticut earns a “B” for transparency in government spending, according to an annual report card grading the 50 states in online access to data on where taxpayer dollars are spent.

> Keep Reading
News Release | ConnPIRG Education Fund | Budget

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

Connecticut 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 ConnPIRG Education Fund. 

> Keep Reading

Pages

Report | ConnPIRG Education Fund | Budget

Revealing Tax Subsidies and CT Open Data

An examination of the content and implementation of two executive orders issued by Governor Malloy intended to increase government transparency

> Keep Reading
Report | ConnPIRG Education Fund | Tax

Offshore Shell Games 2014

Many large U.S.-based multinational corporations avoid paying U.S. taxes by using accounting tricks to make profits made in America appear to be generated in offshore tax havens – countries with minimal or no taxes. By booking profits to subsidiaries registered in tax havens, multinational corporations are able to avoid an estimated $90 billion in federal income taxes each year. These subsidiaries are often shell companies with few, if any employees, and which engage in little to no real business activity. 

> Keep Reading
Report | ConnPIRG | 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 to reduce their state and federal income tax liability by billions. Tax haven abusers benefit from America’s markets, public infrastructure, educated workforce, security and rule of law but they avoid paying for these benefits leaving ordinary taxpayers to pick up the tab.

> Keep Reading
Report | ConnPIRG Education Fund | Budget

Following the Money 2014

Every year, state governments spend tens of billions of dollars through contracts for goods and services, subsidies to encourage economic development, and other expenditures. Accountability and public scrutiny are necessary to ensure that the public can trust that state funds are well spent. 

> Keep Reading
Report | ConnPIRG | Budget

Closing the Billion Dollar Loophole

Every year, corporations 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 use tax havens to escape supporting these public structures and benefits.

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