With taxes on everyone’s mind this time of year, the New Jersey Public Interest Group asks New Jerseyans to consider that they are paying an average of $1,560 in additional taxes due to multinationals using offshore entities to help defer or eliminate their tax liabilities.
According to NJPIRG, corporations and wealthy individuals avoid paying an estimated $184 billion in state and federal income taxes each year.
U.S. Rep. Frank Pallone Jr. (D-6), who cosponsored the Stop Tax Haven Abuse Act, suggested that special interests are preventing the practice from being eliminated. Just this month, the Senate Finance Committee voted to renew what were called especially “egregious” offshore loopholes that will cost U.S. taxpayers $8 billion a year, according to Peter Skopec, Program Associate of NJPIRG.
The NJPIRG report also found that the average New Jersey small business will have to pay $4,982 to cover the cost of offshore tax loopholes available to large corporations. PIRG also recommended that passing reforms that exist in other states would result in New Jersey generating an additional $60 million in revenue each year.