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

News Release | MASSPIRG | Budget, Tax

Groups call for Transparency and Accountability of Corporate Tax Breaks

MASSPIRG calls on State House Committee to make corporate tax breaks more transparent and accountable.

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News Release | MASSPIRG | Budget, Tax

Off Shore Tax Havens Cost Average Mass. Taxpayers $1,542 a Year

With Tax Day approaching, it’s a good time to be reminded of where our tax dollars are going. MASSPIRG  released a new study which revealed that the average Massachusetts  taxpayer in 2012 would have to shoulder an extra $1,542 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals.

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Report | MASSPIRG | Budget, Tax

Picking Up the Tab 2013

Off Shore Tax Havens Cost Average Massachusetts Taxpayers $1,542 a Year.

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News Release | MASSPIRG Education Fund | Budget, Tax

Getting our Money’s Worth?

As Massachusetts kicks off its months-long state budget deliberations, MASSPIRG Education Fund released a new study today that reviews a much-debated and costly category of state spending.

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Report | MASSPIRG Education Fund | Budget, Tax

Getting Our Money's Worth?

The people of Massachusetts deserve to know how their tax dollars are spent, including on tax subsidies for businesses. Full transparency allows citizens to hold lawmakers, government contractors, and recipients of public subsidies accountable. It also promotes fiscal responsibility, checks corruption, and bolsters public confidence in government.

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Media Hit | Budget, Food, Tax

Farm Bill needs to Cut the Fat

Of the $277 billion spent on agricultural subsidies since 1995, 75 percent of the total went to just 3.8 percent of U.S. farmers, skewed towards the largest farms — not small family farms. Massachusetts consumers’ share of the cost for junk food subsidies is about $22.6 million each year on average, compared with just under $800,000 in subsidies for apples. That’s enough to buy 61 million Twinkies, but only 1.6 million apples.

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Media Hit | Budget, Tax

State's tax breaks must be subject to accountability, transparency

Massachusetts has more than doubled special targeted tax breaks to businesses since 1996, with costs to the state budget topping $770 million last year. It is troubling that many programs funded through business tax breaks lack clear goals, much less any way to measure progress toward those goals or ability to reclaim tax breaks that fail to deliver results.

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Media Hit | Budget, Food, Tax

How taxpayer dollars become Twinkies

 

“Subsidies to large agribusiness are egregious enough on their own. The fact that the subsidies go to junk food adds insult to injury.”

 

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News Release | MASSPIRG | Budget, Food, Tax

Ag Subsidies Pay for 21 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, enough to pay for 21 Twinkies per taxpayer every year, according to MASSPIRG’s new report, Apples to Twinkies 2012. “This is ridiculous,”  said MASSPIRG’s Legislative Director, Deirdre Cummings. “First, we are giving taxpayer subsidies to mature, profitable industries while struggling with how to reduce the nation’s record level of debt.  That is bad enough, but in addition, the billions of taxpayer supported subsides are then used to subside junk food—even as our childhood obesity rates are going through the roof. With the Farm Bill about to be reauthorized, it’s time to end this waste.”

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Report | Good Jobs First | Budget, Financial Reform, Tax

Show Us the Stimulus (Again)

A report released today shows that many states are making dramatic improvements in websites designed to disseminate information about their share of the $787 billion American Recovery and Reinvestment Act (ARRA), while others have failed to make vital information available.

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Massachusetts Stimulus Website

hree watchdog groups released their findings about the strengths and weaknesses of the state’s American Recovery and Reinvestment Act website – www.Ma.gov/recovery .

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Report | McCormack Graduate School of Policy Studies | Budget, Financial Reform, Tax

Report of the Quasi-Public Authority Compensation Review Commission

New report calls for improved transparency in Quasi-Public Authorities

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Report | MASSPIRG | Budget, Financial Reform, Tax

Tax Shell Game

Many of the largest corporations in our country hide profits made in the United States in offshore shell companies and sham headquarters in order to avoid paying billions in federal taxes.

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Failing the Bailout

Following the collapse of major financial institutions Congress enacted a sweeping $700 billion taxpayer-financed bailout of the financial sector.

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