Fortune 500 Companies Using Tax Havens To Avoid $620B in US Taxes: Report
Key Excerpts from Article on Website of International Business Times/Reuters
Posted: October 11th, 2015
A new report provides data illustrating just how big a budgetary issue tax avoidance has become. The analysis released Tuesday comes from ... Citizens for Tax Justice and U.S. Public Interest Research Group. The groups find that almost 72 percent of Fortune 500 companies are operating subsidiaries in so-called tax haven countries like Bermuda and the Cayman Islands. In all, those firms are holding more than $2.1 trillion in accumulated profits offshore for tax purposes. The report says that among the U.S.-based firms with the biggest overseas cash holdings are major financial firms such as Citigroup and Bank of America, which were bailed out by taxpayers after the 2008 financial crisis. Also on the list are tech giants such as Microsoft - which International Business Times last year reported was keeping $92 billion offshore. Assuming a tax rate of just 6 percent on those profits - far less than the official U.S. corporate tax rate and less than Trumps proposed repatriation rate - the groups estimate that the firms would collectively owe $620 billion in additional federal taxes if they werent able to shelter their cash in tax havens. For comparison, thats more than the federal governments entire projected budget deficit for 2015.
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