Corporate Tax Overhaul Makes it Easier to Hide Profits in Foreign Tax Havens

New amendments would water down New Jersey's corporate tax code and cost the state even more revenue.

Published on Jun 12, 2023 in Economic Justice

Later today, the Senate Budget and Appropriations Committee will vote on S3737, a bill that would overhaul New Jersey’s corporate tax code and make it easier for multinational corporations to hide their profits in foreign tax havens. The bill’s amendments weaken it further, removing much-needed discretion by tax authorities to force corporations to disclose their tax-haven subsidiaries and include their profits in their tax filings. In anticipation of the bill advancing through committee, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“At a time of record-breaking corporate profits, this bill would make it much easier for big, multinational corporations to hide their profits abroad or in complex tax avoidance schemes. The proposal was bad enough when it was first introduced, but new amendments will water down the corporate tax code even further and cost the state even more revenue.

“As many corporate lobbyists have publicly stated, this overhaul of the tax code was drafted with extensive input from corporations and their tax law firms and accountants. But one group was missing from these discussions: the people of New Jersey whose schools, transit infrastructure, and public services will lose out if corporations avoid paying their fair share in taxes. This bill, combined with the planned $1 billion corporate tax cut, would further tilt the tax code to favor special interests at the expense of New Jersey residents and the public programs and investments we all rely on.”

Read NJPP’s analysis of the bill here.

Read a national tax expert’s opposition to the bill here.

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