The Romney Effect: States Lose $39.8 Billion Due to Offshore Tax Avoidance
By: Sarah JonesFeb. 5th, 2013more from Sarah Jones
The need to close corporate loopholes became even more apparent after a new study revealed today that state budgets were hit collectively with $39.8 billion in lost revenue from offshore tax dodging in 2011, and corporations account for more than $26 billion of that lost tax revenue.
A study released today by the U.S. Public Interest Research Group, a Washington-based consumer group that also lobbied for the creation of the Consumer Financial Protection Bureau, determined that it’s not just the federal government that’s hit by tax dodgers like Mitt Romney. The states get hit, too.
Dan Smith, Tax and Budget Advocate for U.S. PIRG Education Fund and report co-author, explained that tax dodging is not a victimless offense, “Tax dodging is not a victimless offense. When corporations skirt taxes, the public is stuck with the tab. And since offshore tax dodgers avoid both state and federal taxes, they hurt everyday taxpayers twice. States should be using that money to benefit the public.”
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.