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 Wisconsinites $2.1 billion last year.

LOOPHOLES COST US $2.1 BILLION 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 Wisconsin taxpayer paid $772 more this year to cover the $150 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, the state and national legislatures 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.

Issue updates

News Release | WISPIRG | Tax

Offshore Tax Havens Cost Average Wisconsin Taxpayer $1054 a Year, Wisconsin Small Business $3966

A new study released by WISPIRG revealed that the average Wisconsin taxpayer in 2013 would have to shoulder an extra $1,054 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals. 

> Keep Reading
Report | WISPIRG | 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
News Release | WISPIRG Foundation | Tax

Wisconsin could save $27.6 million with simple, proven method to curb offshore tax dodging, new study finds

Wisconsin taxpayers could save $27.6 million from a simple reform to crack down on offshore tax dodging, according to “Closing The Billion-Dollar Loophole: How States Are Reclaiming Revenue Lost to Offshore Tax Havens,” a new report released by WISPIRG. 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.  The Legislative Fiscal Bureau estimates that this simple reform would increase state corporate income and franchise tax revenues by $28.8 million.

> Keep Reading
News Release | WISPIRG | Tax

Offshore Tax Havens Cost Average Wisconsin Taxpayer $773 a Year, Wisconsin Small Businesses $2,746

With Tax Day approaching, it’s a good time to be reminded of where our tax dollars are going. Today WISPIRG released a new study which revealed that the average Wisconsin taxpayer in 2012 would have to shoulder an extra $773 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals.  To make up the burden of revenue lost due to corporate tax haven abuse, Wisconsin small businesses would have to pay an extra $2,746 every year. Closing these loopholes is a common sense solution that every lawmaker should support.

> Keep Reading

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News Release | WISPIRG | Tax

Offshore Tax Havens Cost Average Wisconsin Taxpayer $1054 a Year, Wisconsin Small Business $3966

A new study released by WISPIRG revealed that the average Wisconsin taxpayer in 2013 would have to shoulder an extra $1,054 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals. 

> Keep Reading
News Release | WISPIRG Foundation | Tax

Wisconsin could save $27.6 million with simple, proven method to curb offshore tax dodging, new study finds

Wisconsin taxpayers could save $27.6 million from a simple reform to crack down on offshore tax dodging, according to “Closing The Billion-Dollar Loophole: How States Are Reclaiming Revenue Lost to Offshore Tax Havens,” a new report released by WISPIRG. 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.  The Legislative Fiscal Bureau estimates that this simple reform would increase state corporate income and franchise tax revenues by $28.8 million.

> Keep Reading
News Release | WISPIRG | Tax

Offshore Tax Havens Cost Average Wisconsin Taxpayer $773 a Year, Wisconsin Small Businesses $2,746

With Tax Day approaching, it’s a good time to be reminded of where our tax dollars are going. Today WISPIRG released a new study which revealed that the average Wisconsin taxpayer in 2012 would have to shoulder an extra $773 in taxes to make up for the revenue lost due to the use of offshore tax havens by corporations and wealthy individuals.  To make up the burden of revenue lost due to corporate tax haven abuse, Wisconsin small businesses would have to pay an extra $2,746 every year. Closing these loopholes is a common sense solution that every lawmaker should support.

> Keep Reading
News Release | WISPIRG Foundation | Budget, Tax

Congresswoman Gwen Moore joins WISPIRG's call for closing offshore tax loopholes to avert fiscal cliff

As we work to push for closure of offshore tax loopholes as part of any fiscal cliff deal, Congresswoman Gwen Moore, co-sponsor of the Stop Tax Havens Abuse Act in the House, joins our call for Congressional leadership to act on this vital issue of public interest.

> Keep Reading
News Release | WISPIRG Foundation | Budget, Tax

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

Many corporations and wealthy individuals use offshore tax havens—countries with minimal or no taxes—to avoid paying $150 billion in U.S. taxes each year. By shielding their income from U.S. taxes, corporations and wealthy individuals shift the tax burden to ordinary Americans, who must pick up the tab in the form of cuts to public services, more debt, or higher taxes. The $150 billion lost annually to offshore tax havens is a lot of money, especially at a time of difficult budget choices. To put this sum in perspective, we present 16 potential ways that income could be used.

> Keep Reading

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Result | Tax

Closing a Corporate Tax Loophole

WISPIRG advocacy contributed to closing a corporate tax loophole that levels the playing field for Wisconsin-based businesses by preventing multi-state companies from using out-of-state subsidiaries to avoid paying their taxes.

> Keep Reading
Report | WISPIRG | 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 | WISPIRG | Tax

Picking Up the Tab 2013

Many multinational corporations and wealthy Americans use accounting tricks and offshore tax havens to avoid paying taxes on profits and income that they earned in the U.S. Right now these practices are perfectly legal - and that's the problem. Revenues that are earned from sales and work here in the United States are hidden overseas and it costs the U.S. up to $150 billion in lost tax revenue every single year.

> Keep Reading
Report | WISPIRG Foundation | Budget, Tax

The Hidden Cost of Offshore Tax Havens

This report reveals how abuse of tax loopholes hurts taxpayers not just once, but twice, as the state of Wisconsin lost an estimated $814 million in revenue in 2012 due to offshore tax dodging

> Keep Reading
Report | WISPIRG Foundation | Budget, Tax

What America could do with $150 billion lost to offshore tax havens

Many corporations and wealthy individuals use offshore tax havens—countries with minimal or no taxes—to avoid paying $150 billion in U.S. taxes each year. By shielding their income from U.S. taxes, corporations and wealthy individuals shift the tax burden to ordinary Americans, who must pick up the tab in the form of cuts to public services, more debt, or higher taxes. The $150 billion lost annually to offshore tax havens is a lot of money, especially at a time of difficult budget choices. To put this sum in perspective, we present 16 potential ways that income could be used.

> Keep Reading

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