Lawmakers Push to Stop Tax Haven Abuse
by Jessica Schieder, 1/15/2015
On Jan. 13, Rep. Lloyd Doggett (D-TX) and Sen. Sheldon Whitehouse (D-RI) introduced the Stop Tax Haven Abuse Act. The bill would eliminate incentives for U.S. companies to shift jobs overseas, close offshore loopholes to ensure corporations are paying their fair share in taxes, and change rules on corporate inversions.
Doggett, a longtime supporter of eliminating offshore tax loopholes exploited by large multinational corporations, said in a press statement, “While most Americans contribute their fair share to our national security and vital public services, some large corporations still are not […] This bill is a step toward righting some of these inequities and ensuring that taxpaying small businesses are provided a more level playing field.”
"This bill is a step toward righting some of these inequities and ensuring that taxpaying small businesses are provided a more level playing field."
Whitehouse introduced the bill in the Senate, saying “Big corporations shouldn’t be allowed to play games with the tax code and benefit from shipping jobs overseas.” He took up the mantle previously carried by former Sen. Carl Levin (D-MI), who retired in December. Levin leaves an impressive 36-year legacy of strong and reliable support for tax fairness initiatives, a dedication to social justice, and a deep commitment to transparency.
- Ensure corporations that are managed and controlled in the U.S. are counted as domestic corporations for tax reasons (saving $6.6 billion over ten years)
- Repeal rules that allow companies to strategically filter their profits through foreign subsidiaries to reduce their tax bills (saving $78 billion over ten years)
- Require multinational corporations to provide information about their revenues, profits, and employees by country, which would help stop international tax avoidance
By ensuring corporations pay their fair share toward in the cost of our shared national priorities, we will be in a better position to address our nation’s unmet needs, including investments that would strengthen our transportation networks, ensure clean air and water, and improve access to education.
For Further Reading:
Flow of Illicit Money Undermines Governments and Impedes Development, The Fine Print, 12/16/2014
Environment, Workers, and Financial Protections Among the Hardest Hit in 2015 Spending Bill, The Fine Print, 12/11/2014
400 Richest Americans Paid Same Effective Tax Rate as a Family Earning $105,000, The Fine Print, 12/2/2014