Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

For Immediate Release

Press Release

New Report: Multinationals Dodging $718bn in U.S. Taxes on Profits Booked Offshore

New Analysis Underscores Need to End Deferral, Boost Transparency of Companies’ Offshore Tax Practices
WASHINGTON -

The largest American companies have stashed nearly $2.5 trillion in profits offshore allowing them to dodge $718 billion in U.S. taxes, according to a new report released Tuesday by Citizens for Tax Justice (CTJ), the Institute on Taxation and Economic Policy (ITEP), and the U.S. Public Interest Research Group (PIRG) Education Fund—all members of the Financial Accountability and Corporate Transparency Coalition (FACT Coalition).

Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:

“There’s been a lot of talk this week about how the tax system is rigged and this report is Exhibit A. Multinational corporations are now holding $2.5 trillion offshore. To put that in context, it is an amount larger than the GDP of France. By shifting their profits to tax havens, the largest U.S. companies have been able to avoid more than $700 billion in taxes. These loopholes simply aren’t available to average taxpayers and small businesses, who can’t afford to hire the lawyers and accountants to move money through shell companies created in tax havens.”

“Unfortunately, a number of proposals we see from Congress seek to exacerbate the situation by moving us to a system that would permanently reward offshore tax avoidance. Instead, Congress should end the practice of deferring taxes on profits held offshore and remove the bizarre incentives for companies to ‘invert.’ If we are ever going to rationalize the corporate tax code, we must also boost transparency of these accounting maneuvers to better understand them. As a start, companies should be required to publicly disclose their revenues, profits and tax information on a country-by-country basis.”

The FACT Coalition also filed a comment late Monday with the U.S. Securities and Exchange Commission cautioning the agency against proceeding with a rule to reduce disclosure to investors and urging the SEC to instead boost transparency through public country-by-country reporting.

###

FACT Coalition logo

The Financial Accountability and Corporate Transparency (FACT) Coalition is a non-partisan alliance of more than 100 state, national, and international organizations working toward a fair tax system that addresses the challenges of a global economy and promoting policies to combat the harmful impacts of corrupt financial practices.

Analysis Highlights Biden Proposal to End $84 Billion Gift to Big Oil Buried in Trump Tax Scam

"We can stop this insane corporate welfare and use it to pay for a renewable energy future."

Andrea Germanos, staff writer ·


Intent on Appeasing Manchin, US Blocks G7 Progress on Phasing Out Coal

"Once again Joe Manchin is casting a heavy shadow."

Julia Conley, staff writer ·


Calls to 'Expand the Supreme Court' Grow as McConnell Warns He's Prepared to Steal Another Seat

"Mitch McConnell is already foreshadowing that he'll steal a 3rd Supreme Court seat if he gets the chance. He's done it before, and he'll do it again."

Jake Johnson, staff writer ·


'All He Has to Do Is Sign': Group Crafts Executive Order for Biden to Cancel All Student Loan Debt

"With the stroke of a pen, Biden could grant tens of millions of Americans a semblance of financial freedom."

Jake Johnson, staff writer ·


Rich Nations' Vaccine Pledge Includes Just 613 Million New Doses—Well Short of Promised 1 Billion

"A single factory could produce this number in a year if you waived patents."

Jake Johnson, staff writer ·