April, 18 2011, 10:22am EDT

For Immediate Release
Contact:
Gary Kalman, Legislative Office Director
U.S. Public Interest Research Group
(202) 546-9707 x.311; GKalman@pirg.org
Off-Shore Tax Havens Cost U.S. Taxpayers $434 a Year
Loopholes Allow Many Corporations to Pay Less Than Individuals and Households
WASHINGTON
Major corporations and some individuals avoid as much as $100 billion a year in federal taxes by "off-shoring" the profits they make here in the U.S. or by setting up sham headquarters in tax haven countries.
According to Tax Shell Game: How Much Did Offshore Tax Havens Cost You In 2010?, a new U.S. Public Interest Research Groupreport, the use of offshore tax havens results in $434 in additional tax burden for taxpayers around the country.
"Main street businesses and ordinary taxpayers without access to an army of accountants to devise elaborate tax avoidance schemes are forced to pick up the tab every year. We've already paid to bail out the banks and other big corporations - is it fair to ask us to pay their taxes as well?" said U.S. PIRG Legislative Office Director Gary Kalman.
In the weeks and months leading up to Tax Day, Congress has debated the national debt, rising deficits, and across-the-board cuts to a range of public priorities such as food safety inspectors, Pell grants and clean air and water programs. U.S. PIRG has called on Congress to address the deficit by closing corporate tax loopholes, rather than cutting public priorities.
"We urge you to begin with closing loopholes that allow corporations to hide profits offshore. These entities benefit from access to American markets, an educated workforce, infrastructure and security and pay little or nothing for it," Kalman wrote in a recent letter to Congressional leadership.
Due in part to complex tax avoidance schemes, nearly two-thirds of corporations doing business in the U.S. pay no income taxes at all, according to a 2008 report from the Government Accountability Office. More than 83 of the 100 largest publicly traded U.S. corporations have subsidiaries in tax haven countries or financial privacy jurisdictions. Companies that received taxpayer-funded bailout money or receive lucrative government contracts and use tax havens include American Express, A.I.G, Exxon Mobil, Goldman Sachs and Pfizer.
To read Tax Shell Game: How Much Did Offshore Tax Havens Cost You In 2010?, click here.
To learn more about the companies who lobby against reforms, read U.S. PIRG's report, Who Slows the Pace of Tax Reform.
U.S. PIRG, the federation of state Public Interest Research Groups (PIRGs), stands up to powerful special interests on behalf of the American public, working to win concrete results for our health and our well-being. With a strong network of researchers, advocates, organizers and students in state capitols across the country, we take on the special interests on issues, such as product safety,political corruption, prescription drugs and voting rights,where these interests stand in the way of reform and progress.
LATEST NEWS
'Beautiful': Minnesota Becomes 4th State to Provide Free School Meals to All Kids
"Let this serve as a reminder that poverty is a policy choice," said one advocate. "In the richest country in the world, it is absolutely inexcusable that millions of our children go to school hungry because they are living in poverty."
Mar 18, 2023
Surrounded by students, teachers, and advocates, Democratic Minnesota Gov. Tim Walz on Friday afternoon signed into law a bill to provide breakfast and lunch at no cost to all of the state's roughly 820,000 K-12 pupils regardless of their household income.
The move to make Minnesota the fourth U.S. state to guarantee universal free school meals—joining California, Maine, and Colorado—elicited praise from progressives.
"Beautiful," tweeted Stephanie Kelton, a professor of economics and public policy at Stony Brook University.
"No child should go hungry for any reason, period."
UC-Berkeley professor and former U.S. labor secretary Robert Reich wrote on social media: "Let this serve as a reminder that poverty is a policy choice. In the richest country in the world, it is absolutely inexcusable that millions of our children go to school hungry because they are living in poverty."
An estimated 1 in 6 children in Minnesota don't get enough to eat on a regular basis. But 1 in 4 food-insecure kids live in households that don't qualify for the federal free and reduced meal program, leading to "mounting school lunch debts in the tens of thousands of dollars," Minnesota Public Radioreported.
Tens of thousands of children are set to benefit from Minnesota's new law, which could be operational as early as summer school in July. Some of them were there to thank Walz at the signing ceremony, where the sense of elation was palpable.
"As a former teacher, I know that providing free breakfast and lunch for our students is one of the best investments we can make to lower costs, support Minnesota's working families, and care for our young learners and the future of our state," Walz said. "This bill puts us one step closer to making Minnesota the best state for kids to grow up, and I am grateful to all of the legislators and advocates for making it happen."
The Minnesota House—led by the Democratic-Farmer-Labor (DFL) Party, the state's Democratic affiliate—first passed the bill in February in a 70-58 party-line vote. The state Senate—where the DFL holds just a single-seat advantage—approved it on Tuesday by a 38-26 margin. The state House rubber-stamped an amended version of the bill on Thursday.
In a now-viral clip from the state Senate's debate over the bill earlier this week. Sen. Steve Drazkowski (R-20) questioned whether hunger is really a problem in Minnesota—even as the state's food banks reported a record surge in visits last year, months before federal lawmakers slashed pandemic-era Supplemental Nutrition Assistance Program (SNAP) benefits.
"I have yet to meet a person in Minnesota that is hungry," Drazkowski said before voting against the bill. "I have yet to meet a person in Minnesota that says they don't have access to enough food to eat."
During Friday's signing ceremony, Lt. Gov. Peggy Flanagan (DFL) said, "To our decision-makers who believe they have never met someone who is experiencing or has experienced hunger: Hi, my name is Peggy Flanagan, and I was 1 in 6 of those Minnesota children who experienced hunger."
"By providing free breakfast and lunch to all of our students, we are removing barriers and removing stigma from the lunch room," said Flanagan. "We are helping family pocketbooks, especially for those 1 in 4 who don't qualify for financial assistance with school meals. We are leading with our values that no child should go hungry for any reason, period."
"This is an investment in the well-being of our children, as well as an investment in their academic success," Flanagan added, calling the "generation-changing" bill "the most important thing" she's ever worked on in her life.
"By providing free breakfast and lunch to all of our students, we are removing barriers and removing stigma from the lunch room... This is an investment in the well-being of our children, as well as an investment in their academic success."
As Minnesota Reformerreported: "The majority of Minnesota schools receive federal funding from the National School Lunch Program, which reimburses schools for each meal served, though it doesn't cover the cost of the entire meal. Under the new law, schools are prohibited from charging students for the remaining cost, and the state will foot the rest of the bill—about $200 million annually."
MPR noted that "the legislation is similar to a program that was introduced during the pandemic to provide meals for all students, but was discontinued at the end of last year."
Last month, The Star Tribune editorial board opined that providing free breakfast and lunch to all of Minnesota's students, including affluent ones, is "excessive."
Pushing back against this argument for means-testing, Darcy Stueber—director of Nutrition Services for Mankato Area Public Schools and public policy chair of the Minnesota School Nutrition Association—asserted that meals should be guaranteed to all kids at no cost, just like other basic learning necessities.
"We don't charge for Chromebooks and desks and things like that," she told MPR. "It's a part of their day and they're there for so many hours. It just completes that whole learning experience for the child."
Minnesota Rep. Sydney Jordan (DFL-60A), the bill's lead author, made the same point to counter GOP lawmakers' complaints following the initial passage of the legislation.
"We give every kid in our school a desk," Jordan said last month. "There are lots of kids out there that can afford to buy a desk, but they get a desk because they go to school."
Walz, for his part, stressed Friday that his administration is "just getting started" when it comes to boosting education funding.
"The big stuff," said the governor, "is still coming."
Keep ReadingShow Less
'Threat to the Nation': Trump Calls for Protests to Stop Potential Arrest in Echo of Jan. 6
Trump has recently "excused or dismissed the violence of January 6," one journalist warned. "He is an authoritarian willing to (again) use violence for his own ends."
Mar 18, 2023
Former U.S. President Donald Trump claimed Saturday on his social media platform that he "will be arrested" on Tuesday and implored his supporters to "protest" and "take our nation back," sparking fears of additional right-wing violence.
Trump's call to action was reminiscent of how, six weeks after losing the 2020 presidential election, he took to Twitter to urge his supporters to join a "big protest" in Washington, D.C. on January 6, 2021. "Be there, will be wild!" he wrote. Hundreds of far-right insurrectionists showed up and, after Trump told them to march from a rally near the White House to the Capitol, stormed the halls of Congress in a bid to prevent lawmakers from certifying President Joe Biden's win. Multiple people died as a result of the failed coup, which was fueled by Trump and his Republican allies' incessant lies about voter fraud.
Trump is expected to be indicted by a Manhattan grand jury in a criminal case involving hush money paid to women who said they had sexual encounters with the former president, but its timing is unclear.
Just before 7:30 am ET on Saturday, Trump baselessly declared on Truth Social: "Illegal leaks from a corrupt and highly political Manhattan district attorney's office... indicate that, with no crime being able to be proven... the far and away leading Republican candidate and former president of the United States of America will be arrested on Tuesday of next week. Protest, take our nation back!"
Alluding to Trump's prior use of social media to provoke the Capitol attack, Citizens for Responsibility and Ethics in Washington asked, "Will Facebook, Twitter, and YouTube allow him to use their platforms to incite riots?"
Mother Jones' D.C. bureau chief David Corn, meanwhile, noted that Trump has recently "excused or dismissed the violence of January 6."
"He is an authoritarian willing to (again) use violence for his own ends," Corn tweeted. "That is a threat to the nation."
As HuffPost's senior White House correspondent S.V. Dáte pointed out, "The coup-attempting former president... began inciting civil unrest if prosecutors came after him more than a year ago."
At a January 2022 rally in Texas, Trump promised to pardon January 6 rioters if he wins in 2024 and urged huge protests if prosecutors investigating his effort to subvert the 2020 election and other alleged crimes try to bring charges.
"If these radical, vicious, racist prosecutors do anything wrong or illegal, I hope we are going to have in this country the biggest protest we have ever had... in Washington, D.C., in New York, in Atlanta, and elsewhere because our country and our elections are corrupt," Trump told a crowd of his supporters 14 months ago.
According toThe New York Times:
Early Saturday morning, there was little evidence yet that Mr. Trump's new demand for protests had been embraced by extremist groups.
But Ali Alexander, a prominent organizer of "Stop the Steal" rallies after the 2020 election, reposted a message on his Telegram channel on Saturday suggesting that he supported mass protest to protect Mr. Trump.
"Previously, I had said if Trump was arrested or under the threat of a perp walk, 100,000 patriots should shut down all routes to Mar-a-Lago," Mr. Alexander wrote. "Now I’m retired. I'll pray for him though!"
Lacking the platform provided by the White House or the machinery of a large political campaign, it is unclear how many people Mr. Trump is able to reach, let alone mobilize, using his Truth Social website.
After the FBI in early August searched Trump's Mar-a-Lago palace and removed boxes of documents as part of a federal probe into the ex-president's handling of classified materials, many anonymous and some well-known reactionaries called for "civil war" on Twitter, patriots.win, and elsewhere.
Three days later, Ricky Shiffer, a Trump loyalist with suspected ties to a far-right extremist group and an unspecified connection to the January 6 insurrection, was shot and killed by police after an hourslong standoff. Shiffer, wielding an AR-15 and a nail gun, allegedly attempted to break into the FBI's Cincinnati office and fled to a nearby field when he was unsuccessful.
Meanwhile, Trump continued to lie about the Mar-a-Lago search on Truth Social, sparking an "unprecedented" surge in threats against FBI personnel and facilities.
As Dáte noted on Saturday morning, many people downplayed warnings issued ahead of the January 6 assault.
"Many of Trump's core supporters want authoritarianism," the journalist tweeted. "They believe in neither democracy nor the rule of law."
As the Times reported:
Although prosecutors working for the [Manhattan] district attorney, Alvin L. Bragg, have signaled that an indictment of Mr. Trump could be imminent, there was no immediate indication as to why the former president appeared confident that he would be arrested Tuesday. People with knowledge of the matter have said that at least one more witness is expected to testify in front of the grand jury, which could slightly delay any indictment.
Three people close to Mr. Trump said that the former president's team had no specific knowledge about when an indictment might come or when an arrest could be anticipated. One of those people, who were not authorized to speak publicly, said that Mr. Trump's advisers' best guess was that it could happen around Tuesday, and that someone may have relayed that to him, but that they also had made clear to one another that they didn't know a specific time frame.
Trump is expected to be charged in connection with payments his former lawyer, Michael Cohen, made to silence adult film actress Stormy Daniels and Playboy model Karen McDougal—both of whom alleged affairs with Trump—in the run-up to the 2016 presidential election.
Cohen has testified that at Trump's direction, he orchestrated payments totaling $280,000 to Daniels and McDougal. According to Cohen, the Trump Organization reimbursed him $420,000 and classified it as a legal fee. Trump's former fixer pleaded guilty to federal campaign violations in 2018.
Trump has so far evaded charges but that could soon change, as prosecutors are expected to accuse Trump of greenlighting the false recording of expenses in his company's internal records.
Citing five unnamed officials familiar with the matter, NBC Newsreported Friday that local, state, and federal law enforcement and security agencies are preparing for the possibility of a Trump indictment as early as next week.
If indicted, Trump would become the first U.S. president to face criminal charges in or out of office. Trump, who has denied all wrongdoing, says that he will keep campaigning regardless of whether he is arrested.
The Manhattan D.A.'s hush money probe is just one of Trump's many legal woes. The twice-impeached president is also facing a state-level criminal investigation in Georgia over his efforts to overturn that state's 2020 election results, as well as federal probes into his coup attempt and his handling of classified government documents.
Nevertheless, Trump is still seen as the front-runner to win the GOP's 2024 nomination.
David Aronberg, the state attorney for Palm Beach County, Florida, said Saturday morning that if Trump is indicted in New York, "there will be protests here," warning: "You have to worry about potential violence."
He pointed out that questions remain as to whether Trump would surrender to New York authorities or face extradition. Republican Florida Gov. Ron DeSantis, another authoritarian demagogue who is widely considered Trump's leading rival for the GOP's 2024 nomination, "has to sign off [any] extradition orders," said Aronberg.
The Times noted that if "Trump is arraigned, he will almost certainly be released without spending any time behind bars because the indictment is likely to contain only nonviolent felony charges."
However, The Associated Pressreported that it is not clear when the other investigations into Trump "will end or whether they might result in criminal charges."
"But they will continue regardless of what happens in New York," the outlet explained, "underscoring the ongoing gravity—and broad geographic scope—of the legal challenges confronting the former president."
Keep ReadingShow Less
'Macron Resign!' French Protests Intensify Over Attempt to Force Retirement Age Hike
"This forced passage with the use of Article 49.3 must be met with a response in line with this show of contempt toward the people," declared one union leader as MPs introduced no-confidence motions.
Mar 17, 2023
Protests in Paris and across France have ramped up since President Emmanuel Macron's government on Thursday used a controversial constitutional measure to force through a pension reform plan without a National Assembly vote.
Fears that the Senate-approved measure—which would raise the retirement age from 62 to 64—did not have enough support to pass the lower house of Parliament led to a Council of Ministers meeting, during which Macron reportedly said that "my political interest would have been to submit to a vote… But I consider that the financial, economic risks are too great at this stage."
"This reform is outrageous, punishing women and the working class, and denying the hardship of those who have the toughest jobs."
After the meeting, French Prime Minister Élisabeth Borne announced the decision to go with the "nuclear option," invoking Article 49.3 of the French Constitution—a calculated risk considering the potential for a resulting motion of no-confidence.
Members of Parliament opposed to the overhaul filed a pair of no-confidence motions on Friday, and votes are expected on Monday. Although unlikely, given the current makeup of the legislature, passing such a motion would not only reject the looming pension law but also oust Macron's prime minister and Cabinet, and likely lead to early elections in France.
As Deutsche Wellereported:
"The vote on this motion will allow us to get out on top of a deep political crisis," said the head of the so-called LIOT group Bertrand Pancher, whose motion was co-signed by members of the broad left-wing NUPES coalition.
The far-right National Rally (RN) filed a second motion, but that was expected to get less backing. RN lawmaker Laure Lavalette however said her party would vote for "all" no-confidence motions filed. "What counts is scuppering this unfair reform bill," she said.
Leaders of the Les Republicains (LR) are not sponsoring any such motions. Reutersexplained that individuals in the conservative party "have said they could break ranks, but the no-confidence bill would require all of the other opposition lawmakers and half of LR's 61 lawmakers to go through, which is a tall order."
Still, Green MP Julien Bayou said, "it's maybe the first time that a motion of no-confidence may overthrow the government."
Meanwhile, protests against the pension proposal—which have been happening throughout the year—continue in the streets, with some drawing comparisons to France's "Yellow Vests" movement sparked by fuel prices and economic conditions in 2018.
Not long after Borne's Article 49.3 announcement on Thursday, "protesters began to converge on the sprawling Place de la Concorde in central Paris, a mere bridge away from the heavily guarded National Assembly," according toFrance 24.
As the news outlet detailed:
There were the usual suspects, like leftist firebrand Jean-Luc Mélenchon, thundering against a reform he said had "no legitimacy—neither in Parliament, nor in the street." Unionists were also out in strength, hailing a moral victory even as they denounced Macron's "violation of democracy."
Many more were ordinary protesters who had flocked to the Concorde after class or work. One brandished a giant fork made of cardboard as the crowd chanted "Macron démission" (Macron resign). Another spray-painted an ominous message on a metal barrier—"The shadow of the guillotine is nearing"—in the exact spot where Louis XVI was executed 230 years ago.
Police used tear gas to disperse the Concorde crowd. Interior Minister Gérald Darmanin told RTL radio 310 people were arrested nationwide—258 of them in Paris. He said, "The opposition is legitimate, the protests are legitimate, but wreaking havoc is not."
Anna Neiva Cardante is a 23-year-old student whose parents, a bricklayer and a cleaner, "are among those who stand to lose most."
"A vote in the National Assembly was the government’s only chance of securing a measure of legitimacy for its reform," Neiva Cardante told France 24 as police cleared the crowd Thursday. "Now it has a full-blown crisis on its hands."
"This reform is outrageous," she added, "punishing women and the working class, and denying the hardship of those who have the toughest jobs."
Across the French capital early Friday, "traffic, garbage collection, and university campuses in the city were disrupted, as unions threatened open-ended strikes," DW noted. "Elsewhere in the country, striking sanitation workers blocked a waste collection plant that is home to Europe's largest incinerator to underline their determination."
"Article 49.3 constitutes a triple defeat for the executive: popular, political, and moral," declared Laurent Escure, secretary general of the labor union UNSA. "It opens up a new stage for the protests."
The French newspaper Le Mondereported that "the leaders of France's eight main labor unions called for 'local union rallies' on the weekend of March 18 and 19 and for a 'new big day of strikes and demonstrations' on Thursday, March 23."
Philippe Martinez of the CGT union asserted that "this forced passage with the use of Article 49.3 must be met with a response in line with this show of contempt toward the people."
Fellow CGT representative Régis Vieceli vowed that "we are not going to stop," tellingThe Associated Press that flooding the streets and refusing to work is "the only way that we will get them to back down."
Keep ReadingShow Less
Most Popular
SUPPORT OUR WORK.
We are independent, non-profit, advertising-free and 100%
reader supported.
reader supported.