Monday, October 20th, 2014

Closing Offshore Tax Loophole Would Bring $20 Million To Arizona

Arizona would have more than $20 million more in state coffers if a tax loophole were closed. That is according to a new report from the United States Public Interest Research Group that focuses on a so-called "water's edge" exemption – meaning that U.S. taxes on income are exempt for money generated inside another country. Dan Smith helped write the report. He explains that it is as simple as a corporation setting up a post office box in a low-tax country, such as the Cayman Islands, and claiming the exemption.
The report points out that while federal action could be taken to close the loophole, states can do it, too. Montana and Oregon already have taken that step with bipartisan support. Montana collected an additional seven-million-dollars in just one year.

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