Corporations and wealthy individuals avoid an estimated $100 billion in taxes annually by shifting income to low- or no-tax offshore tax havens, according to an Illinois Public Interest Research Group study released Friday morning.
Of that, $60 billion in taxes are avoided by corporations, the non-profit group reported. And it also cited a Government Accountability Office study that found at least 83 of the top 100 publicly traded corporations use offshore tax havens.
The practice puts an unfair burden on small businesses and individuals, the group contends, noting the lost $100 billion in taxes works out to $508 per Illinois taxpayer or $2,556 per small business.
When corporations use these practices, “the rest of us have to pick up the tab,” said Celeste Meiffren, field director for Illinois PIRG. Small businesses “are put at a competitive disadvantage since they can’t hire armies of well-paid lawyers and accountants to use offshore tax loopholes.”
The organization is pushing for congressional action to close offshore tax loopholes.