SPRINGFIELD – Figures reported by U.S. Public Interest Research Groups found the federal government lost over $150 billion in revenue in 2013 due to offshore corporate tax havens.
State Senator Michael E. Hastings (D-Tinley Park) championed the override of the governor’s veto of House Bill 3419 to level the playing field among businesses that compete for state contracts and investments.
“Corporations that use offshore tax havens to avoid paying taxes should not be rewarded with state contracts and business,” Hastings said. “If businesses are going to avoid paying taxes, they should not be making money off of taxpayer dollars.”
House Bill 3419 will prohibit expatriate corporations from submitting bids or entering into contracts with state agencies.
Expatriate corporations utilize tax havens to avoid paying taxes.
“It is plain and simple. If corporations don’t pay taxes they should not benefit from state contracts,” Hastings said. “We need to give local businesses that play fair and pay their fair share of Illinois income taxes a chance to compete and be successful when they bid for state contracts.”
This will apply to any foreign country that does not impose a substantial income tax or substantial business activity tax.
