U. S. PIRG Report: The Hidden Cost of Offshore Tax Havens

U.S. PIRG

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?

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