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Report: Big Corporations' Tax Avoidance Costs States Over $40 Billion in Revenue
Ben Secord on December 7, 2011 - 6:30pm
As states across the country scramble for solutions to another year of deep budget troubles, a report released today finds that some of the nation’s largest and most profitable corporations aren’t paying their fair share in state taxes – by a long shot. Co-released by the Citizens for Tax Justice and the Institute on Taxation and Economic Policy, the report finds that a quarter of the corporations surveyed paid no state corporate income tax in at least one of the last three years. Collectively, the corporations surveyed cost states more than $40 billion over that time.
Over the past three decades, corporate income taxes have continued to shrink as a share of total state revenues, from nearly ten percent in 1980 to less than six percent today. The study is a companion to a report released last month that found these corporations were dodging taxes at the federal level too.
Matt Gardner, Executive Director of the Institute on Taxation and Economic Policy said of the findings, “These corporations raked in a combined $1.33 trillion in profits in the last three years, and far too many have managed to shelter half or more of their profits from state taxes. They’re so busy avoiding taxes, it’s no wonder they’re not creating any new jobs.”
You can access the full report here.