From the Executive Summary. 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.
What can states do?
- "Decouple” their tax system from the federal tax system.
- Require worldwide combined reporting for multinational corporations
- Urge their federal representatives to reject a “territorial” tax system, which would further erode state revenue. .
- Require increased disclosure of financial information about corporations’ business presence in other countries
- Withhold taxes as part of federal Foreign Account Tax Compliance Act (FATCA) withholding.
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