First Poll on Oversea Tax Havens Reforms Finds Rejection of "Territorial" Tax System
WASHINGTON, April 9, 2013 /PRNewswire-USNewswire/ -- Small business owners oppose the current system for taxing U.S. multinational corporations, according to a new, first-of-its-kind poll. The national scientific poll released today by the American Sustainable Business Council (ASBC) and the Main Street Alliance (MSA) shows that support for reform is bipartisan and widespread.
For the first time, small business owners were surveyed on specific reforms for overseas corporate tax havens. Current tax law enables companies to defer indefinitely taxes on profits earned overseas. The ASBC-MSA poll tested three possible reforms: ending deferral, instituting a territorial system, and establishing combined reporting.
Key findings from the survey include:
- (85%) of small business owners oppose a territorial tax system, which would permanently exempt offshore profits from U.S. taxation.
- 76% support closing overseas tax loopholes by implementing a unitary combined reporting system, which would limit the ability of corporations to avoid taxes by shifting profits offshore.
- 64% support ending deferral, a provision of current tax code that allows corporations to indefinitely defer payment of U.S. taxes on profits made or shifted offshore.
- By a margin of more than two to one, small business owners prefer to close corporate tax loopholes rather than cut government spending.