Dems call on LePage to sign offshore tax havens bill

Bill stops multinationals from evading taxes, levels field for Maine businesses

AUGUSTA – Democrats on Wednesday called on Gov. Paul LePage to sign a bill that would prevent multinational corporations from dodging Maine taxes through accounting tricks.

Senator Haskell speaks at the press conference

LD 1120, An Act To Improve Maine’s Tax Laws, would level the playing field for Maine-based businesses by preventing tax evasion by multinational corporations that use tax code loopholes to make it seem as though the income was generated elsewhere. Under the measure, corporations would have to report income from a list of 38 known offshore tax havens.

“It’s absolutely unfair that we would prioritize multinational corporations that hide money in Luxembourg or Liechtenstein over Maine’s small businesses, senior citizens and struggling families,” said Rep. Adam Goode, D-Bangor, the bill’s sponsor and the House chair of the Taxation Committee. “We already prevent corporations from hiding money in states like Delaware and Nevada. Why should we turn a blind eye when it comes to offshore tax havens?”

Senator Jackson calls on Gov. LePage ot put Lewiston before Luxembourg

Maine loses $10 million in each two-year budget period, according to an estimate made by the non-partisan Office of Fiscal and Program Review with help from Maine Revenue Services. This revenue could be used for priorities like revenue sharing, increased property tax fairness credits, early education, Clean Elections or helping seniors afford prescriptions.

“We ask the governor, ‘What’s the priority? Is Maine open for businesses that cheat Maine taxpayers and closed for businesses to those pay their fair share?’” asked House Majority Leader Seth Berry of Bowdoinham. “Governor LePage, will you choose Liechtenstein or Livermore Falls?  The Kingdom of Bahrain or Kennebunk? Luxembourg or Lewiston? Monaco or Millinocket?”

States lose an estimated $20 billion annually because of corporate use of offshore tax havens. It’s up to the states themselves to close these loopholes.

“Maine people follow the rules and pay their bills, it’s time for big corporations to do the same,” said Senate Majority Leader Troy Jackson of Allagash. “I simply cannot turn a blind eye to big corporations hiding their money in some offshore account. If Maine people are expected to pay their fair share then multinationals should do the same.”

Other states, including Montana and Oregon, are already combating these issues in a bipartisan manner with similar laws.

Senator Haskell: this bill is a common-sense solution to stop tax dodging

“This bill is a common-sense solution to stop 21st century tax dodging by big corporations,” said Assistant Senate Majority Leader Anne Haskell of Portland, who also serves as the Senate Chair of the Taxation Committee. “By closing these corporate loopholes, we can level the playing field for Maine businesses and recoup $5 million each year.”

The measure will be sent to the Governor for his signature in the coming week.

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