Hunting Lost Revenue in Offshore Tax Havens

Source: Elaine S. Povich, Stateline.org, March 10, 2014

Some states are going after multinational corporations which avoid state taxes by stashing some of their earnings in offshore tax havens, an effort aimed at recouping some of the more than $20 billion states lose to such gimmicks each year. Shifting income to subsidiaries in places like the Cayman Islands or Bermuda, which have minimal or no taxes, allows corporations to avoid U.S. and state taxes on those profits. Congress has been unable to thwart the practice at the federal level, but some states are taking action….

…Montana and Oregon already have laws allowing them to collect those taxes. Montana’s 2004 law is seen as the model; it collected $7.2 million in extra revenue in 2010, the most recent year for which numbers are available. Oregon, which passed its law last year, anticipates an additional $18 million in fiscal 2014-15, according to Bob Estabrook, spokesman for the Oregon Department of Revenue. By the time the two-year budget cycle ends in fiscal 2016-17, Oregon expects to collect an extra $42 million, Estabrook said….