Major corporations and some individuals avoid a total of as much as $100 billion a year in federal taxes by “offshoring” the profits they make in the U.S. or by setting up fake headquarters in tax haven countries. As a result, Illinois taxpayers are left footing the bill, which includes small business owners.
A new group that began last summer, Business and Investors Against Tax Abuse, aims to fight it.
A new Illinois Public Interest Research Group (Illinois PIRG) report revealed the use of offshore tax havens results in $434 in additional taxes for taxpayers around the country. In this economic climate, it’s enough to make anyone angry. But in Illinois, it’s $490.
Of course it’s the big ones that use tax havens, including American Express, A.I.G, Exxon Mobil, Goldman Sachs and Pfizer.
“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 Brian Imus, State Director with Illinois PIRG.
A report last year stated that the big guys saved $37 billion by avoiding federal taxes – money that could be used to fund initiatives to support America’s small businesses — the nation’s biggest job creators. The money could be used to increase access to capital and increase opportunities to invest and even establish a $30 billion Small Business Lending Fund for community banks.
Today, Illinois PIRG today called on Congress to address the deficit by closing corporate tax loopholes, rather than cutting public priorities. Let’s hope they listen.