AS per a USA-based consumer group US PIRG, when large corporations make
use of offshore tax havens, small businesses pay the price. The report states
that to cover the cost of corporate abuse of offshore financial centres in 2011,
the average American small business would pay USD 2116.
Authors of the Report have reportedly stated that when big corporations shirk their tax liability by shifting profits
legitimately made in the USA to tax havens, small businesses are required to
bear the brunt of either high tax rates or cuts to public spending to priority
sectors. The US Treasury loses USD 100 bn annually, with USD 60 bn on account of
tax avoidance by large corporates.
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