Last week, Citizens for Tax Justice and the Institute on Taxation & Economic Policy released a report showing that 265 consistently profitable Fortune 500 companies avoided paying an estimated $42.7 billion in state corporate income taxes over 3 years.
The data confirms the bad news that over the past two decades, corporations have become remarkably creative in figuring out schemes to avoid paying their fair share in taxes. The result is fewer dollars to invest in schools, roads and safe, healthy communities.
But here's the good news: there is a simple way for our policymakers in North Carolina to crack down on corporate tax dodging. All they have to do is require corporations to pay taxes on profits earned in states where they do business. This common-sense idea, called "mandatory combined reporting," could raise up to $100 million each year in North Carolina.
These dollars would be enough to hire more than 2,000 classroom teachers or preserve vital health services for children, the elderly, and North Carolinians with disabilities that are threatened by recent state budget cuts.
Help us make the case to state lawmakers that it's time to put the people of North Carolina first and ensure that corporations pay their fair share of taxes by enacting mandatory combined reporting.