Thursday, March 17, 2011

How tax havens cost the U.S. taxpayer $60-90bn in avoidance

Jesse Drucker, who has done some excellent reporting on how U.S. companies use tax havens to avoid billions, is now on NPR, explaining a lot of it.

Two choice quotes from the site:
"They're a company that does almost 100 percent of its sales here in the U.S., they have almost 100 percent of their employees in the U.S., they're headquartered in New York City and yet the majority of their profits show up overseas, most of them attributed to a mailbox in Bermuda."
And, importantly,
"An economist at Reed College estimated that the U.S. is losing $60 billion a year in federal tax revenue [from all U.S. companies], but she's actually in the process now of revising that estimate and has arrived at a figure closer to $90 billion."
The audio of the recording will be available shortly.


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