Offshore Tax Evasion in USA Hurts All Americans

April 16, 2014 Taxation in USA

Tax Evasion in the USAWASHINGTON D.C. – Individual taxpayers in the USA would need to pay an extra USD 1 259 per year in order to cover the losses in tax revenues arising from offshore tax evasion.

On April 15th the United States Public Interest Research Group (US PIRG), an independent consumer advocacy organization, released a new report showing that every year multinational corporations and wealthy individuals in the USA evade as much as USD 184 billion in taxes through the use of offshore entities, and the subsequent revenue shortfall is left to be picked up by the rest of the taxpayers in the country.

According to the authors of the new report, in 2013 alone the federal government lost USD 150 billion in tax revenues to “…corporations and individuals using tax havens to dodge taxes”, while state governments cumulatively lost USD 34 billion during the same time.

If the revenue shortfall were to be covered by solely by extra tax collections from individual taxpayers, tax obligations would rise by an average of USD 1 259 per year.

However, if the burden was transferred entirely onto small businesses in the USA, their tax payments would need to rise by an average of USD 3 923 per year.

Photo by: Emilian Robert Vicol