Close Corporate Tax Loopholes
PERVASIVE TAX AVOIDANCE — Across the country, some of the nation’s most prosperous companies — including GE, Google and Goldman Sachs — have avoided paying the taxes they owe, costing taxpayers $150 billion last year.
LOOPHOLES COST CALIFORNIANS $21.6 BILLION LAST YEAR
No company should be able to game the tax system to avoid paying what it legitimately owes. And, yet, establishing shell companies in offshore havens for the purpose of tax avoidance is becoming more the rule than the exception for at least 83 of the nation's top 100 publicly traded companies. 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.
The most recent academic studies estimate that as a country we lose $150 billion a year in tax revenue due to offshore tax havens. That's money that is shouldered by average taxpayers, either through 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.
The result? The average taxpayer paid $1,026 more this year to cover the billions that GE and others that use offshore tax havens skipped out on. And small businesses and companies that don’t use these schemes have to struggle to compete with those that do.
Meanwhile, state legislatures and Congress are considering deep cuts for essential public programs — from education, to health care, to clean air and drinking water. They’re asking us to tighten our belts and make sacrifices, while giving the tax haven crew a free ride. We are pushing for common-sense 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.
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Some of the nation’s best-known companies — including GE, Google and Goldman Sachs — have avoided paying the taxes they owe, costing us $100 billion last year.
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