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 Education Fund | Budget, Tax

Transparency In City Spending

New report reviews and grades the nation’s thirty largest cities including Boston on how effectively they allow the public to track budgets, contracting, subsidies, grants and requests for quality-of-life services.

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Report | MASSPIRG Education Fund | Budget, Tax

Transparency In City Spending

The report reviews and grades the nation’s thirty largest cities including Boston on how effectively they allow the public to track city spending - including budgets, contracts, subsidies, and grants. 

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Media Hit | Tax

Look offshore to avert the fiscal cliff

There are better ways to use $150 billion than having it sit in a P.O. box in the Caymans. With the fiscal cliff on the horizon, closing offshore tax loopholes should be an obvious first step to solving our budget woes.

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News Release | MASSPIRG | Budget, Tax

First Step to Avoid the Fiscal Cliff: Close Offshore Tax Loopholes

With Congress scrambling to agree on ways to reduce the deficit, MASSPIRG joined with business, legislative and community leaders today to point out a clear first step to avoid the “fiscal cliff”: closing offshore tax loopholes. Many of America’s largest corporations and wealthiest individuals use accounting gimmicks to shift profits made in America to offshore tax havens, where they pay little to no taxes.  This kind of tax avoidance costs the federal government $150 billion in tax revenue each year.

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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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Media Hit | Tax

Boston Globe - State tax code reforms are long overdue

Legislative Director, Deirdre Cummings, responds to “Panel to urge fewer tax breaks’’ as it perfectly illustrates the need for significant reform in the state tax code.

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News Release | MASSPIRG Education Fund | Democracy, Tax

Thirty Companies Contribute $41 Million to 524 Members of Congress, Receive $10.6 Billion in Tax Rebates

A new report released Wednesday, March 21st by MASSPIRG Education Fund and Citizens for Tax Justice (CTJ) found that thirty tax dodging corporations have made campaign contributions to 524 (98%) sitting members of Congress, and disproportionately to the leadership of both parties and to key committee members

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News Release | MASSPIRG | Budget, Tax

Ryan Budget a Windfall for Special Interests, Devastating to Public Priorities

Statement of MASSPIRG Legislative Director on the Federal FY 2013 budget proposed by Chairman Paul Ryan (Wisconsin) of the House Budget Committee.

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News Release | MASSPIRG Education Fund | Budget, Tax

New Report: Massachusetts Receives an “A-” in Annual Report on Transparency of Government Spending

“Massachusetts has moved to the head of the class when it comes to providing the public with easy-to-use, one-stop, comprehensive and timely information about how government spends our tax dollars,” said Deirdre Cummings, Legislative Director of MASSPIRG.

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Media Hit | Budget, Tax

Boston Herald - Tug of war over TJX

Under a proposed 20-year agreement that would give TJX a big break on property taxes, the off-price retailer would move 1,600 employees from offices at 500 Old Connecticut Path in Framingham and Westboro to two buildings it plans to buy at 300 and 400 Puritan Way in Marlboro.

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