The current tax code is riddled with loopholes that enable large, multinational corporations to avoid or evade paying taxes, which shifts their tax responsibilities to small businesses and average taxpayers. Today, Rep. Mark Pocan (D-WI) introduced new tax legislation that aims to close those major offshore tax avoidance loopholes.
Main Street Alliance, a national network of small business owners, supports the Tax Fairness and Transparency Act. Any small business owner can explain how hard it is to compete with large corporations, in part because large companies can afford lawyers and accountants who help them capitalize on offshore loopholes to reduce their tax burden.
The Tax Fairness and Transparency Act does three things: ends deferral, the biggest offshore tax loophole; targets earnings strippings; and increases transparency by requiring multinationals to publicly report profits and taxes on a country-by-country basis.
With tax reform topping the agenda for the Trump Administration and Republicans, this is an important moment to note that above all else, small business owners need more customers with more disposable income, not tax cuts. Corporate tax avoidance costs taxpayers an estimated $135 billion a year. According to the Financial Accountability and Corporate Transparency Coalition (FACT Coalition), the relatively simple reforms laid out in the Tax Fairness and Transparency Act would go a long way in curbing corporate tax evasion. That puts those billions back in the pockets of American consumers, and ultimately small businesses.
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