Wednesday, February 20, 2013
As you work on your state income tax return, give some thought to how much extra state income tax you must pay to make up for very wealthy California residents and multinational corporations who squirrel away money offshore.
The burden they shifted onto you came to $2.9 billion from wealthy individuals and $4.2 billion from big companies in the 2011-12 state budget year, a pioneering new study estimates [The Hidden Cost of Offshore Tax Havens: State Budgets Under Pressure From Tax Loophole Abuse]. Together the escaped tax comes to $7.15 billion that you have to make up through higher state taxes, fewer services or the state taking on more debt to fund current operations. ...
California, with 12% of the nation's population, sustained 18% of the losses because of its concentration of very wealthy people and multinational companies. Some of these companies, such as Google and Hewlett-Packard, are well known for their use of tax havens to avoid taxes.