FOR IMMEDIATE RELEASE: Thursday, April 12
CONTACT: Rachel Tardiff, rachel[at]fitzgibbonmedia.com
REPORT: TAX HAVEN ABUSE BY U.S. CORPORATIONS SHORTS U.S. TREASURY OF REVENUES TO TUNE OF $2,116 FOR EVERY SMALL BUSINESS IN AMERICA
Main Street Alliance joins U.S. PIRG, Rep. Van Hollen, Business for Shared Prosperity to release report highlighting cost of tax haven abuse to small businesses
** State by state numbers on cost of tax haven abuse to small businesses available **
Washington, DC – On Thursday morning, the Main Street Alliance joined U.S. PIRG, Congressman Chris Van Hollen, Business for Shared Prosperity and the American Sustainable Business Council at a Capitol Hill press conference releasing U.S. PIRG’s new report “Picking Up the Tab: Average Citizens and Small Businesses Pay the Price for Offshore Tax Havens.”
According to the report, tax haven abuse by U.S. corporations shortchanges the U.S. Treasury of revenues by an average of $2,116 for every small business in America (using Census numbers for businesses with fewer than 100 employees). Click here to read the report (small business section on page 10, state by state tables on pp. 17-18).
“When big corporations use loopholes and tax havens to avoid paying taxes, they’re robbing our country of the revenues we need to invest in our future and support small businesses,” said Aimee McQuilkin, owner of Betty’s Divine, an independent clothing boutique in Missoula, Montana and a leader with the Montana Small Business Alliance and Main Street Alliance. “If you want to fly the American flag outside your corporate headquarters, you should pay your way.”
Joseph Rotella, owner of Spencer Organ Company in Waltham, Massachusetts and a leader with Business for Shared Prosperity, spoke at the report release event on Capitol Hill. “While I’ll be paying my taxes – investing in the public infrastructure and services that underpin our economy – many profitable large corporations will be paying a lower tax rate than me or not paying taxes at all,” Rotella said. “That puts small businesses at a competitive disadvantage and undermines our nation. We need to stop the tax haven abuse that lets big corporations avoid paying their fair share and gives them an unfair advantage in the marketplace.”
According to a Senate investigation, the U.S. Treasury loses an estimated $100 billion a year due to tax haven abuse, with $60 billion of that being tax avoidance by U.S. corporations.
In a recent scientific survey of 500 small business owners nationwide, nine out of ten small business owners say U.S. multinationals’ use of accounting loopholes to shift profits to offshore subsidiaries to avoid taxes is a problem. Three quarters of small business owners say their small business is harmed when loopholes allow big corporations to avoid taxes. And more than two thirds of small business owners believe big corporations are not paying their fair share of taxes. Full survey results are available here: http://bit.ly/report-taxes
The Main Street Alliance, Business for Shared Prosperity, and other business groups have signed on in support of the Stop Tax Haven Abuse Act and the CUT Loopholes Act, bills sponsored by U.S. Senator Carl Levin to rein in tax haven abuse and recover lost revenues.
Click here to read the “Picking Up the Tab” report: http://uspirg.org/reports/usp/picking-tab
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