Closing Corporate Loopholes, Aiding States

June 02, 2010

Writing on the Huffington Post, Arianna Huffington asks why offshore corporate tax havens are still allowed. She attributes it to two sets of rules — one for the corporate class and another for working Americans. While workers play by the rules and watch as jobs disappear, the Senate takes a break instead of extending unemployment benefits.

One of the most glaring examples of this continues to be the ability of corporations to cheat the public out of tens of billions of dollars a year by using offshore tax havens. Indeed, it's estimated that companies and wealthy individuals funneling money through offshore tax havens are evading around $100 billion a year in taxes -- leaving the rest of us to pick up the tab. And with cash-strapped states all across the country cutting vital services to the bone, it's not like we don't need the money.

Lobbyists have fought for decades to keep these loopholes open, but the American Jobs and Closing Tax Loopholes Act will clamp down on some of the ways corporations hide their income offshore. The bill also includes an extension of unemployment benefits and critical funding for states and local governments.

Last Friday, the U.S. House passed this bill, but not before stripping out state aid — when the Senate takes up their version of the bill when they return from recess, they need to make sure this state aid is included. It's important to close this loophole, and it's crucial that funding be restored so that states aren't forced to slash hundreds of thousands of jobs and gut education, health care and public safety services even more.

Read Arianna's full post and then call your senators and urge them to pass H.R 4213 — including needed state aid.