Seven Mile Beach on Grand Cayman Island. The US loses $150 billion in federal revenue annually when earnings are transferred to tax havens like the Cayman Islands.
US taxpayers would need to pay an average of $1,259 more a year to make up the federal and state taxes lost to corporations and individuals sheltering money in overseas tax havens, according to a report.
"Tax haven abusers benefit from America's markets, public infrastructure, educated workforce, security and rule
of law - all supported in one way or another by tax dollars - but they avoid paying for these benefits," US Public Interest Research Group said in the report released today, the deadline for filing 2013 taxes.
"Instead, ordinary taxpayers end up picking up the tab, either in the form of higher taxes, cuts to public spending priorities, or increases to the federal debt," it said.
In total, the United States loses $150 billion in federal revenue and another $34 billion in state revenue annually because of money parked in tax havens, the Boston-based consumer advocacy group concluded.
That's almost 5 per cent of total federal revenue. The US is projected to raise $3.032 trillion this year, up from $2.775 trillion for fiscal year 2013, according to the Congressional Budget Office.
US PIRG released the report as it tries to increase pressure on lawmakers to change how companies pay taxes on income credited to foreign subsidiaries.
The largest US-based companies have accumulated $1.95 trillion outside the US, up 11.8 per cent from a year earlier, according to securities filings from 307 corporations reviewed by Bloomberg News.
Read the full report here
