Arizona corporations and individuals used loopholes to shift earnings to foreign countries, thus avoiding $503 million in state tax payments, says a research organization.
The Arizona Public Interest Research Group issued its report this week, citing a long list of reports and research from the U.S. Treasury Department, the Internal Revenue Service, the Government Accountability Office, academic institutions and news outlets.
"Tax havens are used by both wealthy individuals and corporations," the organization said in a press release. "In Arizona, $360 million is lost from the corporate abuse of tax havens and $143 million from individuals."
The group called on the Arizona Legislature to take steps that would close loopholes and bring the revenue in to the state treasury.
Serena Unrein, public interest advocate for the Arizona PIRG Education Fund, was quoted in the press release as saying the tax avoidance hurts the public.
“When corporations skirt taxes, the public is stuck with the tab," Unrein said in the press release. "Since offshore tax dodgers avoid both state and federal taxes, they hurt everyday taxpayers twice. ”Offshore tax havens shift the tax burden to ordinary Americans, forcing us to make up the difference by cutting public services, growing our already big deficit, or raising taxes.”