For Immediate Release
Phone: +1 202.683.4816
Fax: +1 202.683.4849
New Study Highlights Danger of Near 0% Tax Rate for Profits Booked Offshore
ITEP/PIRG Report Reveals at Least 366 Corporations — 73 Percent — in the Fortune 500 Operate One or More Subsidiaries in Tax Haven Countries.
WASHINGTON - A new study released Tuesday highlights the widespread use of offshore tax haven loopholes by large multinational companies. The study highlights the danger of congressional proposals to exempt profits booked offshore from taxation, according to the Financial Accountability and Corporate Transparency Coalition (FACT Coalition). Titled “Offshore Shell Games 2017: The Use of Offshore Tax Havens by Fortune 500 Companies,” the report was jointly published by the Institute on Taxation and Economic Policy (ITEP) and the U.S. PIRG Education Fund — both members of the FACT Coalition.
Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:
“This study reveals that large multinationals currently have $2.6 trillion booked offshore on which they are avoiding a staggering $752 billion in U.S. taxes.
“As Congress considers proposals to institute a near zero percent tax rate on profits booked offshore by multinational corporations, the findings in this report should give policymakers pause. The study shows that today’s flawed tax system allows for gaming on a grand scale. But we shouldn’t make it even worse.
“Proposals exempting profits booked to offshore tax havens from taxation could well mean that these companies never pay U.S. income taxes again. These tax giveaways hurt middle-class taxpayers who will pay either in higher taxes, larger deficits, or cuts to services they use. That’s why, earlier this month, more than 100 organizations came out against plans by the White House and congressional leadership to open the largest offshore tax loophole in U.S. history.”
This is the world we live in. This is the world we cover.
Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Don't Exist.
Founded in 2011, the Financial Accountability and Corporate Transparency (FACT) Coalition unites over 100 different civil society representatives from small business, anti-corruption, faith-based, government watchdog, human rights, investors, labor, public-interest, and international development organizations from across the ideological spectrum.
We seek an honest and fair international tax code, greater transparency in corporate ownership and operations, and commonsense policies to combat the facilitation of money laundering and other criminal activity by the financial system.