ITEP Report Reveals Fortune 500 Companies Booking Record $2.6 Trillion in Untaxed Profits Abroad
WASHINGTON, D.C. – As Washington turns its attention to tax reform, a new report from the Institute on Taxation and Economic Policy underscores the immense scale of offshore tax avoidance: Fortune 500 companies have booked a record $2.6 trillion in profits offshore, allowing them to avoid up to $767 billion in U.S. taxes. ITEP is a member of the Financial Accountability and Corporate Transparency Coalition (FACT Coalition), an alliance of more than 100 state, national, and international organizations working toward a fair tax system that addresses the challenges of a global economy.
Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement welcoming the report:
“As policymakers pivot from healthcare to tax reform, these numbers should grab their attention. The current tax code is broken — it’s riddled with offshore loopholes systematically inserted by special interests that result in large, multinational companies shifting their tax responsibilities to small businesses, domestic businesses, and taxpayers.
“Despite anger generated over offshoring in last year’s campaign, congressional leaders have yet to propose a tax plan that would address the offshore gaming.
“Instead, House lawmakers have been floating a tax reform blueprint that would alter but not stop the gaming. It is a fairly radical and untested policy exercise to upend the international tax system. A better approach would be to fix the current one.
“End deferral, strengthen anti-inversion rules, and boost transparency of where multinationals book profits and pay taxes. These comparatively simple reforms would stop the gaming of the tax code and ensure that wholly domestic and small businesses can compete more fairly with multinationals. This is a pragmatic approach that solves the offshoring problem without creating a litany of new ones.”
Deputy Director, The FACT Coalition
The Financial Accountability and Corporate Transparency (FACT) Coalition is a non-partisan alliance of more than 100 state, national, and international organizations working toward a fair and honest tax system that addresses the challenges of a global economy and promoting policies to combat the harmful impacts of corrupt financial practices.
For more information, visit www.thefactcoalition.org.