FOR IMMEDIATE RELEASE: AUGUST 20, 2013
Tax Coalition Issues Report Showing High Costs of Corporate Tax Loopholes
(Washington, D.C.) – In advance of the expected showdown in Congress over budget and tax issues beginning shortly after Labor Day, groups in 16 states are holding 28 events this week to demand that Congress close corporate tax loopholes in order to help avoid more deep cuts to essential benefits and services. The events are being organized by Americans for Tax Fairness (ATF), a coalition of more than 325 national and state organizations.
“With members of Congress back in their states this August, people are demanding that Congress stop corporate tax dodging and invest in America,” said Frank Clemente, campaign manager of Americans for Tax Fairness. “Congress faces a clear choice in September when it debates how to keep the government funded: continue to whack away at critical services that protect our families and that are needed to grow our economy, or close gaping tax loopholes so that big corporations and the rich pay their fair share of taxes.”
ATF today also released a report, The High Price of Tax Loopholes, highlighting the trade-offs between deep cuts in government services and existing corporate tax loopholes. Some of the most egregious tax loopholes cited in the report include letting corporations defer U.S. taxes on their overseas income until the funds are brought back to the United States; allowing hedge fund managers to cut taxes on a large percentage of their income in half; and giving subsidies to oil and gas companies that make billions in profits every year. Each of these corporate tax loopholes is paired against a cut in government benefits or services of roughly the same value – cuts that could be avoided or reversed if Congress acts to restrict special tax breaks for large corporations.
The federal deficit-reduction law mandating the “sequester” requires $109 billion in new budget cuts starting Oct. 1. But in two-and-a-half years of deficit-reduction deals, Congress has put in place three times as much budget cutting ($1.8 trillion) as revenue boosting ($620 billion), according to Senate Budget Committee estimates. And all of the tax increases have come from individuals. Corporations have so far contributed nothing to the effort. The Congressional Budget Office estimates that 900,000 jobs will be lost in the next year if this new round of budget cutting goes forward.
“Congress has been acting as though it has no choice but to slash government spending, but politicians are ignoring the fact that cuts to vital services and large job losses could be averted if some corporations were simply required to pay their fair share of taxes,” said Clemente.
The list of states and cities holding events is available here. A sample of events includes:
Voters are making several demands of members of Congress at these events: