Corporations often park their profits overseas to avoid paying taxes on them. The U.S. Public Interest Research Group released a report yesterday detailing the costs that this has on the average U.S. taxpayer and on small businesses.
Here are some of the report’s key conclusions:
Based on the $150 billion in avoided taxes, the average U.S. tax filer filling out their 1040 form would need to pay $1,026 in additional taxes to make up for lost revenue from tax havens. That’s enough money to feed a family of four for a month. [...] To pick up the tab for the $90 billion multinational corporations avoid, the average small business in the United States would need to pay an average of $3,067 each in additional taxes. Large multinational corporations that use tax havens also gain an artificial competitive advantage over responsible small business owners.
“As this timely report shows, tax haven abuse takes an immense toll on the vast majority of American taxpayers who don’t employ armies of lawyers and accountants to avoid paying the taxes they owe,” said Sen. Carl Levin (D-MI) in a statement made in support of the U.S. PIRG report.