“As Congress scrambles to agree on ways to reduce the deficit, Iowans across the political spectrum must at agree on a clear first step to avoid the “fiscal cliff”: closing offshore tax loopholes,” Gazette guest columnist Sonia Ashe wrote in a column published Saturday.
“Many of America’s largest corporations and wealthiest individuals use accounting gimmicks to shift profits made in America to offshore tax havens, where they pay little to no taxes,” says Ashe, an advocate with the Iowa Public Interest Research Group, a statewide non-profit, non-partisan consumer advocacy organization. ”This tax avoidance costs the federal government $150 billion in tax revenue each year. That’s not chump change.
“With just a single year’s worth of the revenue lost to offshore tax havens, we could give 10 million students Pell Grants for all four years of college; we could bring transportation into the 21st century by funding construction of 15 commuter rail lines, 50 light rail transit lines, and more than 800 bus rapid transit lines; or we could give more than $1,000 to every American who files taxes.”
Read the column linked above for more background. Do you think Congress should close tax-law loopholes that allow offshore tax havens for big business and individuals?