Why small business should be up in arms about tax havens

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This comes from the Huffington Post this morning, and is US focussed:

When big corporations use offshore tax havens, small businesses pay the price -- literally. If they were to cover the cost of corporate abuse of tax havens in 2011, the average U.S. small business would pay $2,116, according to a report released Tuesday by consumer group U.S. PIRG. The estimate is based on Census numbers for businesses with fewer than 100 employees.

"When corporations shirk their tax burden by shifting profits legitimately made in the United States to offshore tax havens like the Caymans, the rest of us must pick up the tab through either cuts to public spending priorities, higher taxes, or more debt," Dan Smith, tax and budget associate for U.S. PIRG and one of the report's co-authors, said in a statement. "Responsible small businesses are further hurt by corporate tax dodging because they are put at a competitive disadvantage since they can't hire armies of well paid lawyers and accountants to use offshore tax loopholes."

It is an argument I have long made.

It's also right.

What baffles me is why small business is not campaigning against the tax breaks big business is given to undermine their smaller competitors.