Illinois lost an estimated $2.5 billion in annual income tax revenue in 2011 as the result of corporations and wealthy individuals using off-shore tax havens, according to a study released Tuesday by the Illinois Public Interest Research Group. This was the fourth largest loss for a state.
California topped the list, with an estimated $7.1 billion in lost corporate and personal income taxes, followed by New York, at $4.3 billion, and New Jersey, at $2.8 billion.
Some corporations and individuals shift earnings to financial institutions in countries or jurisdictions with minimal or no taxes to avoid U.S. income tax liabilities, the organization said. These tactics deprive state governments of revenue too because states typically use the same definitions of income as those in the federal tax code.
The organization estimates the federal government loses $150 billion a year. It estimates states collectively lost $39.8 billion in 2011, with multinational corporations accounting for $26 billion of the total.
Most Popular Stories
- Koch Brothers Step up Anti-Obamacare Campaign
- FDIC Sues Big Banks Over Rate Manipulation
- Stocks Close Lower Ahead of Crimea Vote
- FDIC Accuses Big Banks of Fraud, Conspiracy
- Jittery Investors Dumping Russian Stocks
- U.S. Consumer Sentiment Falls in Early March
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Ulta Shares Look Good on Strong Q4
- Vybz Kartel Convicted of Murder
- JLo Turns the Tables in New Vid: 'I Luh Ya Papi'