Wednesday, July 31, 2013
Tax Havens cost US $150 Billion per year.
California's Apple and Chevron lead the way
No company should be able to game the tax system to avoid paying what it legitimately owes. And, yet, with at least 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.
A dozen of California's largest corporations are holding nearly $262 billion in foreign earnings in offshore subsidiaries to avoid U.S. and California taxation, according to a new study by a the Public Interest Research Group. California's Apple, was listed as having has the most offshore holdings of any U.S. corporation, $82.66 billion. Chevron was another major tax avoider. Tax havens shield companies from federal, state and local taxes.
Recent academic studies in the report estimate that about $150 billion in tax revenue is lost every year to offshore tax havens. The result? Cuts to public services, additional taxes today or additional debt to be passed on to 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.
Read the report: http://uspirg.org/issues/usp/close-corporate-tax-loopholes