ERIC LeCOMPTE, JENNIFER TONG, [email]
LeCompte is executive director and Tong is communications director of the Jubilee USA Network, an alliance of religious denominations, human rights groups and development agencies focusing on global poverty.
The Network says in a recently-released statement: “If corporations paid the $150 billion in taxes that they avoid per year through offshore tax loopholes it would more than cover the $109 billion in automatic spending cuts that are set to begin on January 1, 2013. … These loopholes allow many of America’s largest corporations and wealthiest individuals to avoid taxes by using accounting gimmicks to shift profits made in America to offshore tax havens, where they pay little to no taxes. At least 83 of the top 100 publicly traded corporations in the U.S. make use of tax havens, including Walmart, Coca Cola and Pfizer. When these corporations skip out on their taxes, U.S. citizens are left to pick up the tab. Reclaiming the $150 billion lost to offshore tax loopholes would more than cover the $109 billion in automatic spending cuts that will take effect in 2013 if Congress fails to avert the fiscal cliff. …
“More than half of all banking assets and a third of multinational company investments are routed through tax havens. It is estimated that for every $10 a country receives in development aid, $15 exits the country as a result of tax dodging. Corporations are operating in developing countries and robbing resources by using offshore tax havens to hide their money instead of paying their taxes — curbing this behavior at home sends a message that it should not be tolerated around the world.”