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Tax Haven

  • hastings 052617SPRINGFIELD – Figures reported by U.S. Public Interest Research Groups found the federal government lost over $150 billion in revenue in 2013 due to offshore corporate tax havens. 

    State Senator Michael E. Hastings (D-Tinley Park) passed House Bill 3419 to level the playing field among businesses that compete for state contracts and investments.

    “Corporations that use offshore tax havens to avoid paying taxes should not be rewarded with state contracts and business,” Hastings said. “If businesses are going to avoid paying taxes, they should not be making money off of tax payer dollars.”

    House Bill 3419 will prohibit expatriate corporations from submitting bids or entering into contracts with state agencies. 

    Expatriate corporations utilize tax havens to avoid paying taxes.

    “It is plain and simple. If corporations don’t pay taxes they should not benefit from state contracts,” Hastings said. “We need to give local businesses that play fair and pay their fair share of Illinois income taxes a chance to compete and be successful when they bid for state contracts.”

    This will apply to any foreign country that does not impose a substantial income tax or substantial business activity tax.

    House Bill 3419 passed the Senate with bipartisan support.

  • Sen. Heather A. SteansSPRINGFIELD – State Senator Heather Steans (D-Chicago) introduced legislation yesterday that will crack down on corporations shifting their profits to offshore tax havens.

    Her measure would convert Illinois’ corporate tax system from mandatory “water’s edge” combined reporting that includes only companies with more than 20 percent of their business activity in the United States to a default worldwide combined reporting requirement.

    Steans said at a press conference today that her legislation will provide much-needed revenue for Illinois.

    “We want a fair income tax. That’s going to take time, but we need revenue for our state now,” Steans said. “This is one part of a solution, but it’s a critical one.”