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Quick Hit
by Ellyn Fortino
5:53pm
Wed Apr 29

The High Cost Of Offshore Tax Havens On Small Illinois Businesses

If Illinois small business owners were to collectively offset state and federal revenues lost annually due to corporations using offshore tax havens, they would each have to pay $4,570 in additional taxes a year.

That what-if scenario is laid out in a recent report from the Illinois Public Interest Research Group (PIRG) examining the issue of "corporate tax haven abuse" and what it means for small businesses.

Through the use of accounting "gimmicks" to shift profits offshore, corporations avoid paying $110 billion annually in federal and state income taxes combined, according to Illinois PIRG's "Picking up the Tab" report. Specifically, about $90 billion in federal and $20 billion in state corporate income tax revenue is lost each year to tax havens, the research reveals.

Quick Hit
by Ellyn Fortino
2:23pm
Fri Sep 13, 2013

Report: Bolstering Earned Income Tax Credit For Childless Workers Could Reduce Poverty

The federal Earned Income Tax Credit (EITC) for low-income working families helps to promote work and offset the tax burden households face. But the federal aid program has some glaring problems, according to a recent report from the Center on Budget and Policy Priorities.

The tax credit reaches few low-income childless workers, and those who are eligible see little relief from the hefty federal tax load they are forced to shoulder.

“This is the group we’re taxing deeper into poverty,” said Dan Lesser, director of economic justice at the Sargent Shriver National Center on Poverty Law.

There are two pieces of legislation pending in Congress focused on combating this issue by expanding EITC to more childless workers and boosting the maximum credit from $487 to $1,350.

Samantha Tuttle, director of policy and advocacy at the Heartland Alliance, said increasing the maximum credit would make a “huge difference” in the lives of low-wage, childless workers.

“That’s a huge percentage of income for people experiencing poverty,” she said.