WASHINGTON (August 18, 2011) — In a letter sent yesterday to the just-named Joint Special Select Committee on Deficit Reduction, The Greenlining Institute urged the committee to crack down on offshore tax havens used by U.S. corporations to avoid between $60 billion and $100 billion in federal income taxes each year.
The growing use of offshore tax havens to avoid corporate income taxes – often by companies getting billions of dollars’ worth of taxpayer-funded federal contracts – was highlighted in Greenlining’s July report, “Corporate America Untaxed.” To read the full report please click here
“If Congress tightened the tax code to prevent corporations from moving profits offshore, the country could collect up to $1 trillion in tax revenue between 2012 and 2021 without having to raise taxes for any individual,” argues the letter, written by Greenlining General Counsel Samuel S. Kang and Legal Associate Tuan Ngo. The money saved, the letter notes, would be enough to pay the salaries of 1.2 million schoolteachers or fund the entire combined budgets of the Environmental Protection Agency and the Departments of Energy and Labor.
“At a time when so many Americans are struggling, Congress shouldn’t even think about cutting vital programs like Medicare until it puts a stop to the legalized money laundering that’s robbing the treasury of revenues from America’s wealthiest corporations,” Kang said. “Congress should act immediately to bar tax-evading companies from receiving federal contracts.”
The Greenlining Institute is a multi-ethnic public policy, research and advocacy institute online at www.greenlining.org.