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 Rhode Islanders $429 million last year.
LOOPHOLES COST $429 Million LAST YEAR
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 Rhode Island taxpayer paid $839 more this year to cover the $150 billion that G.E. 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, the Rhode Island 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.
We are pushing for commonsense changes that simply say if corporations are based here and generate profits here, then they should, like all of us who earn income in here, pay the taxes they owe.
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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