Close Corporate Tax Loopholes

PERVASIVE TAX AVOIDANCE — Across the country, some of the nation’s best-known companies — including GE, Google and Goldman Sachs — have avoided paying the taxes they owe, costing taxpayers $100 billion last year.

LOOPHOLES COST NEW JERSEYANS $5.4 BILLION

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 official estimate of how much Americans lose in tax revenue is $150 billion per year. That's money that is shouldered by average taxpayers, either through 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 New Jersey taxpayer paid $1,260 more this year to cover the $100 billion 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.

Issue updates

News Release | NJPIRG Citizen Lobby | Budget, Tax

Offshore Tax Havens Cost Average NJ Taxpayer $1,560 a Year, NJ Small Business $4,982

As hardworking Americans file their taxes today, it’s a good time to be reminded of how ordinary taxpayers pick up the tab for loopholes in our tax laws. NJPIRG was joined today by Congressman Frank Pallone, Jr. (NJ-6), Geetha Jayaraman, owner of Grab ‘Em Snacks and member of the Main Street Alliance, and Rutgers students to release a new study which revealed that the average New Jersey taxpayer in 2013 would have to shoulder an extra $1,560 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals. New Jerseyans’ extra tax burden is the eighth highest in the nation.

> Keep Reading
Report | NJPIRG Citizen Lobby | Budget, Tax

Picking Up the Tab

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.

> Keep Reading
News Release | NJPIRG Law & Policy Center | Budget

New Report: New Jersey Receives a “C+” in Annual Report on Transparency of Government Spending

New Jersey received a C+ 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 New Jersey Public Interest Research Group Law & Policy Center (NJPIRG LPC).

> Keep Reading
Report | NJPIRG Law & Policy Center | Budget

Following the Money 2014

This report, NJPIRG LPC’s fifth annual evaluation of state transparency websites, finds that states are making progress toward comprehensive, one-stop, one-click transparency and accountability for state government spending. Over the past year, new states have opened the books on public spending and several states have adopted new practices to further expand citizens’ access to critical spending information. Many states, however, still have a long way to go to provide taxpayers with the information they need to ensure that government is spending their money effectively.

> Keep Reading
News Release | NJPIRG Law & Policy Center | Budget, Tax

NJ could save nearly $60 million with simple, proven method to curb offshore tax dodging, new study finds

New Jersey taxpayers could save $59.8 million from a simple reform to crack down on offshore tax dodging, according to a new report released today by the NJPIRG Law & Policy Center. The reform, which has already been proven effective in Montana and passed in Oregon, would require companies to treat profits booked to notorious tax havens as domestic taxable income.

> Keep Reading

Pages

News Release | NJPIRG Citizen Lobby | Budget, Tax

Offshore Tax Havens Cost Average NJ Taxpayer $1,560 a Year, NJ Small Business $4,982

As hardworking Americans file their taxes today, it’s a good time to be reminded of how ordinary taxpayers pick up the tab for loopholes in our tax laws. NJPIRG was joined today by Congressman Frank Pallone, Jr. (NJ-6), Geetha Jayaraman, owner of Grab ‘Em Snacks and member of the Main Street Alliance, and Rutgers students to release a new study which revealed that the average New Jersey taxpayer in 2013 would have to shoulder an extra $1,560 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals. New Jerseyans’ extra tax burden is the eighth highest in the nation.

> Keep Reading
News Release | NJPIRG Law & Policy Center | Budget

New Report: New Jersey Receives a “C+” in Annual Report on Transparency of Government Spending

New Jersey received a C+ 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 New Jersey Public Interest Research Group Law & Policy Center (NJPIRG LPC).

> Keep Reading
News Release | NJPIRG Law & Policy Center | Budget, Tax

NJ could save nearly $60 million with simple, proven method to curb offshore tax dodging, new study finds

New Jersey taxpayers could save $59.8 million from a simple reform to crack down on offshore tax dodging, according to a new report released today by the NJPIRG Law & Policy Center. The reform, which has already been proven effective in Montana and passed in Oregon, would require companies to treat profits booked to notorious tax havens as domestic taxable income.

> Keep Reading
News Release | NJPIRG | Budget, Public Health, Food

Ag Subsidies Pay for 20 Twinkies per Taxpayer, But Only Half of an Apple Apiece

Federal subsidies for commodity crops are subsidizing junk food additives like high-fructose corn syrup, at a rate that would buy 20 Twinkies for each taxpayer every year, according to NJPIRG's new report, “Apples to Twinkies 2013: Comparing Taxpayer Subsidies for Fresh Produce and Junk Food.”

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Pages

Report | NJPIRG Citizen Lobby | Budget, Tax

Picking Up the Tab

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.

> Keep Reading
Report | NJPIRG Law & Policy Center | Budget

Following the Money 2014

This report, NJPIRG LPC’s fifth annual evaluation of state transparency websites, finds that states are making progress toward comprehensive, one-stop, one-click transparency and accountability for state government spending. Over the past year, new states have opened the books on public spending and several states have adopted new practices to further expand citizens’ access to critical spending information. Many states, however, still have a long way to go to provide taxpayers with the information they need to ensure that government is spending their money effectively.

> Keep Reading
Report | NJPIRG Law & Policy Center | Tax

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.

> Keep Reading
Report | NJPIRG | Budget, Tax

Offshore Shell Games

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 | NJPIRG | Budget, Public Health, Food

Apples to Twinkies 2013

At a time when America faces high obesity rates and tough federal budget choices, taxpayer dollars are funding the production of junk food ingredients. Since 1995, the government has spent $292.5 billion on agricultural subsidies, $19.2 billion of which have subsidized corn- and soy-derived junk food ingredients. These subsidies are all the more egregious at a time when America is facing an obesity epidemic. Children are three times more likely to be obese than their counterparts three decades ago.

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Blog Post | Budget, Food

Farm Bill Still Giving Corporate Handouts to Big Ag | Jennifer Kim

The U.S. Senate passed its version of the 2012 Farm Bill, and clearly it is still business as usual. The Farm Bill continues its bad habit of subsidizing a few commodity crops like corn and soy to the tune of billions of dollars. Current subsidies go to the largest agribusinesses, with three quarters of the subsidy payments going to fewer than 4% of U.S. farmers.

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Blog Post | Tax

Letter from Congressman Frank Pallone on the Stop Tax Haven Abuse Act | Gideon Weissman

Letter from Congressman Frank Pallone to NJPIRG, announcing that he will become a cosponsor of H.R. 2669, the Stop Tax Haven Abuse Act.  This bill will close a tax loophole that costs the American public more than $100 billion every single year.  For more on NJPIRG's work on fair tax policy, see our tax issue page here: http://njpirg.org/topics/tax

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Blog Post | Budget

Problems With Privatized Law Enforcement's New Frontier | Phineas Baxandall

One in five Americans lives in a jurisdiction that outsources traffic ticketing this way, according to a newly released report from the U.S. Public Interest Research Group, titled "Caution: Red Light Cameras Ahead; The Risks of Privatizing Traffic Law Enforcement and How to Protect the Public." And a report released by the Justice Department suggests this trend may accelerate under the twin pressures of budget pressure and intense lobbying.

> Keep Reading
Blog Post | Budget

Problems With Privatized Law Enforcement's New Frontier | Ed Mierzwinski

One in five Americans lives in a jurisdiction that outsources traffic ticketing this way, according to a newly released report from the U.S. Public Interest Research Group, titled "Caution: Red Light Cameras Ahead; The Risks of Privatizing Traffic Law Enforcement and How to Protect the Public." And a report released by the Justice Department suggests this trend may accelerate under the twin pressures of budget pressure and intense lobbying.

> Keep Reading
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Priority Action

The CUT Loopholes Act would put an end to the price and profit shifting that allows publicly traded companies to engage in pervasive tax avoidance.

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