Close Corporate Tax Loopholes

PERVASIVE TAX AVOIDANCE— Legislative Director Deirdre Cummings presents the MASSPIRG Education Fund's Picking up the Tab 2015 report with Representative Josh Cutler (Duxbury) and Senator Mark Montigny (New Bedford), chief sponsors of a bill that would help close these corporate tax loopholes that cost Bay Staters $2.9 billion last year.

LOOPHOLES COST Bay Staters $2.9 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 last year is $110 billion. 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 Massachusetts small business would need to pay $4,031 to make up for the $110 billion that G.E. and others using offshore tax havens skipped out on - making it difficult for them, and larger companies that don’t use these schemes, to compete with those that do.

Meanwhile, the Massachusetts Legislature 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.

A better solution? Require companies to treat profits made in Massachusetts and funneled to known tax havens like the Cayman Islands as domestic taxable income. MASSPIRG is working hard to pass a state bill, An Act closing a corporate tax haven loophole, sponsored by Representative Josh Culter (Duxbury) and Senator Mark Montgny (New Bedford) and co-sponsored by a bipartisan group of 54 legislators, that would do just that -- saving Massachusetts taxpayers $79 million a year.

Issue updates

Report | MASSPIRG | Budget, Tax

Picking up the Tab 2014: Average Citizens and Small Businesses Pay the Price for Offshore Tax Havens

As hardworking Americans file their taxes today, check out this report to see how ordinary taxpayers pick up the tab for the loopholes in our tax laws.

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News Release | MASSPIRG EDUCATION FUND | Budget, Tax

MA Could Save $79 Million Curbing Offshore Tax Dodging

Massachusetts taxpayers could save $79 million from a simple reform to crack down on offshore tax dodging. MASSPIRG and small businesses owners call for reform.

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Report | MASSPIRG | Budget, Tax

Closing the Billion Dollar Loophole

Massachusetts taxpayers could save $79 million from a simple reform to crack down on offshore tax dodging, according to a new report.

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Media Hit | Budget, Tax

JPMorgan should get no tax deduction in settlement deal

Taxpayers should not pay for corporate wrong doing.

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Blog Post | Budget, Tax

4 REASONS LAWMAKERS ARE SCRUTINIZING HOW COMPANIES TURN SETTLEMENTS FROM WRONGDOING INTO TAX WRITE OFFS | Deirdre Cummings

When a company must pay a penalty for wrongdoing, should the public also shoulder a hidden subsidy for the corporation? Four factors are bringing this issue to a head.

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News Release | MASSPIRG | Budget, Tax

This Time, BP Settlement Protects Taxpayers

Taxpayers protected. BP not allowed to write of legal settlement from Gulf oil spill.


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News Release | MASSPIRG | Budget, Tax

True Amount of BP Settlement Will Depend on Hidden Tax Giveaways

BP agreed today to a $4.5 billion settlement to resolve felony and misdemeanor charges related to the gulf oil spill, but taxpayers may end up indirectly covering up to 35 percent of the amount if the company is allowed to take the amount as a tax write off.

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Media Hit | Budget, Tax

On-Line Retail Tax Subsidy

Deirdre Cummings, legislative director for the Massachusetts Public Interest Research Group, told Tax Analysts on November 13 that the rationale for such favorable tax treatment no longer applies.

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News Release | MASSPIRG | Budget, Democracy, Tax

New Film Exposes Growing Use of Corporate Tax Havens

“The subject of this movie couldn’t be more timely, with taxes front-and-center this election season,” said Deirdre Cummings, legislative director of MASSPIRG. “Gaming the system and dodging taxes is not a right or left issue—it is a citizen issue with tremendous consequences for every resident of the Commonwealth and for every American.”

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Media Hit | Budget, Tax

We Need A Win

By their very nature, anonymous shell corporations are a problem that remains under the radar. Anyone can easily set up an anonymous corporation, but Massachusetts, as well as Connecticut and Maine, are uniquely positioned to play a key role in shutting them down.

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Report | National Taxpayers Union (NTU) | Budget, Financial Reform, Tax

Toward Common Ground

Our nation faces unprecedented fiscal challenges, as the commitments we’ve made now and into the future far outpace our fiscal capacity. Congress, the President’s National Commission on Fiscal Responsibility and Reform, and citizens across the country must grapple with very difficult decisions about how we can put our fiscal house in order. It will be critical to reach out across party lines and across ideological persuasions to achieve common-sense reforms that can bring us closer to balance.

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Out of the Shadows

In Massachusetts, quasi-public agencies perform vital government functions, delivering essential services such as operating public buses and rail systems, delivering drinking water and managing public pensions.Unfortunately, quasi-public authorities operate largely under the radar in Massachusetts, this study uses data provided to us by the quasi-public agencies in response to public records requests, as well as public audits and online searches, to examine the size and scope of quasi-public agencies in Massachusetts and the extent to which their budgets and decision-making are open to the

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Tax Shell Game

The IRS estimates that individuals and corporations currently hold $5 trillion in tax haven countries and asserts that the United States is responsible for a large portion of these assets.

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Following the Money

The ability to see how government uses the public purse is fundamental to democracy. Spending transparency checks corruption, bolsters public confidence in government, and promotes fiscal responsibility.

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