Companies and U.S. citizens shifting profits and income offshore are bilking the U.S. government out of $100 billion in tax revenue a year, according to a new analysis by a congressional research group.
Those using offshore tax havens to skirt paying taxes cost the U.S. government “around $100 billion per year,” according to the Congressional Research Service (CRS), which examined in a new report the many ways in which people cheat the government.
“This activity appears to have increased substantially in recent years,” the report notes.
“The federal government loses both individual and corporate income tax revenue from the shifting of profits and income into low-tax countries,” researchers found. “The revenue losses from this tax avoidance and evasion are difficult to estimate, but some have suggested that the annual cost of offshore tax abuses may be around $100 billion per year.”