Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

Corporate gatekeepers and big tech monopolists are making it more difficult than ever for independent media to survive. Please chip in today.

"The No Tax Cuts for Outsourcing Act provides a comprehensive and much-needed reform of the international tax code," said Alan Essig, executive director, Institute on Taxation and Economic Policy. (Photo: Institute on Taxation and Economic Policy)

Calling Out 'Backward Incentives' of Trump Tax Law, 54 Groups Urge Congress to Support Effort to Stop Corporate Offshoring

Profit that companies are sending overseas thanks to Trump's tax law "is revenue that should be funding critical public investments in healthcare, education, infrastructure, and other priorities"

Jake Johnson

In an effort to combat "one of the most egregious problems" created by President Donald Trump's deeply unpopular $1.5 trillion tax law, a diverse array of 54 prominent advocacy groups sent a letter (pdf) on Thursday calling on members of Congress to back legislation that would eliminate the law's "backward incentives" that—contrary to GOP promises—actually encourage corporations to ship jobs and profits overseas.

"The Trump-GOP tax law continues to encourage corporations to shift enormous profits offshore and outsource good-paying American jobs."
—Frank Clemente, Americans for Tax Fairness

"The Tax Cuts and Jobs Act (TCJA) will allow companies to avoid taxes on $235 billion in profits each year going forward," writes the coalition of groups, which includes Americans for Tax Fairness, Public Citizen, and Jobs With Justice. "This is revenue that should be funding critical public investments in healthcare, education, infrastructure, and other priorities."

"Moreover, the law created new incentives for multinational corporations to move their real operations offshore," the groups add. "The law guarantees that U.S. multinational corporations will pay at most one-half the domestic tax rate on their offshore earnings, with many companies paying little or nothing in taxes on these earnings."

As a remedy for the perverse loopholes created by the GOP tax law, the groups are calling on Congress to support the No Tax Breaks for Outsourcing Act, legislation introduced by Rep. Lloyd Doggett (D-Texas) and Sen. Sheldon Whitehouse (D-R.I.) in February that would eliminate tax breaks for offshore investments and equalize the tax rates companies pay on profits at home and overseas.

"The No Tax Cuts for Outsourcing Act provides a comprehensive and much-needed reform of the international tax code," said Alan Essig, executive director of the Institute on Taxation and Economic Policy (ITEP), one of the letter's signatories. "It would go a long way to cleaning up the mess created by the Tax Cuts and Jobs Act and stop offshore tax avoidance in its tracks."

"The Trump-GOP tax law continues to encourage corporations to shift enormous profits offshore and outsource good-paying American jobs," added Frank Clemente, executive director of Americans for Tax Fairness. "The No Tax Cuts for Outsourcing Act should allow us to recover hundreds of billions of dollars in corporate taxes owed on those profits, which can be invested to create good jobs at home."


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.

Omar Leads Charge Against Baby Formula Monopolies Amid US Shortage

Democrats urge the FTC to probe "any unfair or unsustainable practices, like deceptive marketing, price gouging, and stock buybacks, that may be weakening our nutritional formula supply."

Jessica Corbett ·


'Arbitrary, Racist, and Unfair': Judge Blocks Biden From Ending Title 42

"Only the coyotes profiteering off of people seeking protection have reason to celebrate this ill-reasoned ruling," said one migrant rights advocate.

Brett Wilkins ·


'This Is a War' for Democratic Party's Future, Says Sanders of AIPAC's Super PAC

"They are doing everything they can to destroy the progressive movement in this country," said the senator.

Julia Conley ·


Ginni Thomas Pressed Arizona Lawmakers to Reverse Biden's 2020 Win: Report

"Clarence Thomas' continued service on the Supreme Court is a scandalous and appalling breach of judicial ethics," said one observer. "He is implementing the exact same theories that his wife used to try to steal the 2020 election for Trump."

Brett Wilkins ·


Millions More Kids Going Hungry Since GOP, Manchin Killed Expanded Child Tax Credit

"Even brief disruptions in access to food can have lasting consequences," wrote the authors of a new analysis of worsening hunger among U.S. families.

Kenny Stancil ·

Common Dreams Logo