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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.

In 2011, states lost approximately $39.8 billion in tax revenues from corporations and wealthy individuals who sheltered money in foreign tax havens. Multinational corporations account for more than $26 billion of the lost tax revenue, and wealthy individuals account for the rest…

Some of the largest companies in the United States use tax havens, including many that have taken advantage of government bailouts or rely on government contracts. As of 2008, 83 of the 100 largest publically traded corporations in the United States maintained revenues in offshore tax havens, according to the Government Accountability Office.

At the end of 2011, 290 of the top Fortune 500 companies using tax havens collectively held $1.6 trillion in profits outside the United States—up from $1.1 trillion in 2009—according to Citizens for Tax Justice.

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.”

http://www.politicususa.com/romney-effect-states-lose-39-9-billion-due-offshore-tax-avoidance.html