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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsU.S. PIRG: Nearly $100 Billion In Tax Revenue Is Lost Annually to Offshore Tax Havens
http://wepartypatriots.com/wp/2012/04/20/u-s-pirg-nearly-100-billion-in-tax-revenue-is-lost-annually-to-offshore-tax-havens/U.S. PIRG, the federation of state Public Interest Research Groups, used Tax Day this week to release a new study showing the average American taxpayer will have to pay an extra $426, while small businesses will pay an extra $2,116, to make up for tax losses caused by corporations hiding money in offshore tax havens:
When corporations shirk their tax burden by shifting profits legitimately made in the U.S. to offshore tax havens like the Caymans, the rest of us must pick up the tab through either cuts to public spending priorities, higher taxes, or more debt, said Dan Smith, Tax and Budget Associate for U.S. PIRG and one of the reports co-authors. Responsible small businesses are further hurt by corporate tax dodging because they are put at a competitive disadvantage since they cant hire armies of well paid lawyers and accountants to use offshore tax loopholes.
Nearly $100 billion in tax revenue is lost each year by wealthy individuals and corporations moving money to tax havens. Of that number, nearly $60 billion is held by corporations and its not just a few bad apples. A Government Affairs Office study recently found that 83 of the top 100 traded corporations are guilty of abusing this tax loophole.
'Taxes are not just numbers in spreadsheets, said Joseph Rotella, owner of Spencer Organ Company in Waltham, Massachusetts, and who spoke at the event. Taxes provide the revenues that pay for roads, bridges, public safety, public schools, public transportation and other infrastructure and services my business and my customers count on. We need to stop the tax haven abuse that lets big corporations avoid paying their fair share and gives them an unfair advantage in the marketplace.
unblock
(52,220 posts)many companies use "transfer pricing" -- internal companies selling to each other at tax-convenient, rather than market, prices. this allows them to make sure that the "profits" don't happen in the u.s., they happen in the caymans or somewhere else that has a lower or zero tax rate.
this ONE trick probably accounts for more than $100bn in lost taxes.
and there are many more tricks....
exboyfil
(17,863 posts)You price your goods high then you get the tariff, you price them low then your income is taxed in the U.S.
unblock
(52,220 posts)this is the was personal state income taxes work. the state you live in taxes all income earned in any state. generally, you get a credit for income taxes paid to the state you earned it in, but you still have to pay the difference.
either way, current tax policy is encouraging a lot of pointless shenanigans.
eppur_se_muova
(36,262 posts)Fair's fair, after all.