New York – State Assemblymember Micah Lasher today announced the Multinational Earnings and Global Accountability for Corporations Act — the MEGA Corporations Act — to recover an estimated $737 million that New York State is losing annually to international profit-shifting by large corporations. The bill is being introduced following Donald Trump’s withdrawal of the United States from the “Pillar Two” international agreement aimed at discouraging this kind of tax avoidance.

The MEGA Corporations Act would require companies with annual gross receipts in excess of $1 billion to include global, not just domestic, sales and profits when calculating their corporate franchise tax liability in New York State. This is known as “worldwide combined reporting,” which would replace New York’s current “water’s edge” reporting requirements. New York corporate franchise tax liability would still be calculated based on only New York’s share of a company’s profits, based on sales into New York.

A report from the Institute on Taxation and Economic Policy, released today, estimates that roughly 14% of state corporate income taxes across the country, or $18.7 billion, are being lost to corporate tax avoidance and would be recovered with worldwide combined reporting. The report estimates that New York’s loss is $737 million annually.

"Just as Donald Trump takes crony capitalism in Washington to new heights, we learn that large multinational corporations are shortchanging New York State out of more than $700 million every year by shifting profits overseas. As a matter of basic fairness, we must put a stop to this,” said Assemblymember Micah Lasher. “The MEGA Corporations Act will ensure that large multinationals don’t have an unfair advantage over domestic and in-state companies, and the bill will recover significant revenues for the State. Companies will still only pay taxes on New York’s share of profits, but everything will be accounted for. It’s all the more important as Trump tears up agreements negotiated by the Biden Administration to stop global tax avoidance.”

“Worldwide combined reporting would ensure that companies pay tax based on their profits and business fundamentals, not the level of creativity their accountants bring to their tax returns,” said Carl Davis, research director at the Institute on Taxation and Economic Policy and an author of today’s report. “Any lawmaker who is sick and tired of U.S. companies pretending they earn the bulk of their profits in Ireland and the Cayman Islands should be taking a hard look at worldwide combined reporting right now.”

“I applaud Assemblymember Lasher for introducing the MEGA Corporations Act, which will ensure multinational corporations pay their fair share of taxes to New York State and am glad to sign-on as co-sponsor. These companies should not be gaming the system by shifting their profits to tax havens overseas to avoid taxation, putting smaller New York State based businesses at a competitive disadvantage. The State is losing hundreds of millions a year that we could be investing to meet the needs of New Yorkers and this legislation will fix this,” said Assemblymember Robert Carroll.

“This initiative would fairly tax the profits made by companies proportional to those made in New York State based on an ‘apportionment fraction,’ and keep those tax dollars from continuing to be stowed away in foreign accounts. The fair return of those tax dollars will increase funding to the critical services provided by New York State, while providing a fair playing field for all stakeholders involved in New York’s business communities,” said Assemblymember Tommy John Schiavoni.

"The MEGA Corporations Act ensures that billion-dollar multinational corporations pay their fair share, just like small businesses and working families in New York do every day. This bill closes tax loopholes, levels the playing field, and brings back hundreds of millions in lost revenue to invest in our communities. It's a commonsense step to make our tax system fairer and strengthen New York’s economy for everyone,” said Assemblymember Yudelka Tapia.

“New York State has one of the most robust economies in the world, and we cannot allow the many multinational corporations who benefit from our profitable financial landscape to shirk their responsibilities to our state.New York loses out on more than $700 million in corporate franchise tax revenue from entities that shift their domestic profits to tax havens overseas, currently allowed under New York State law.I am proud to be a co-sponsor of the MEGA Corporations Act, which would close this loophole, stopping profitable corporations from shortchanging New Yorkers once and for all,” said Assemblymember Dana Levenberg.

“I am proud to cosponsor the MEGA Corporations Act which closes a loophole in New York State tax code that unfairly benefits super-large multinational corporations. This act will make these corporations pay their fair share and allow New York to tap into hundreds of millions of dollars of tax revenue which can be invested in our state,” said Assemblymember Harvey Epstein.

"For far too long, large multinational corporations have made billions in profits in New York while skipping out on their fiscal responsibilities to New Yorkers. We've known for years that these corporations take advantage of tax loopholes and shift profits to shell companies abroad. This regressive tax system must change. The MEGA Corporations Act is one step in creating a more equitable taxation system, ending incentives for offshoring and ensuring that the richest corporations operating in New York pay their fair share in taxes. By passing this act, New York can recuperate hundreds of millions in lost revenue,” said Assemblymember Zohran Mamdani.