House Passes Bill that Offshores American Jobs and Profits

The U.S. House of Representatives on Thursdaypassed the "Tax Cuts and Jobs Act" (H.R. 1) -- legislation that will reward offshore tax haven abuse and increase the incentive to outsource American jobs abroad, according to the Financial Accountability and Corporate Transparency (FACT) Coalition. The bill applies a near zero percent tax rate to profits booked in foreign countries compared to a 20 percent tax rate for profits booked in the U.S.

Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:

"House lawmakers chose to pass legislation today that will kill American jobs and turbocharge offshore tax avoidance. There is bipartisan acknowledgement that granting corporations a near zero percent tax rate on the profits they book offshore -- as this bill does -- will further incentivize the shifting of jobs, profits, and operations overseas. It is now incumbent on the American people -- and senators like Susan Collins, Jeff Flake, Ron Johnson, and John McCain -- to stand up and ensure that the Senate removes this wrong-headed, job-killing approach from its own proposal."

In October, more than 100 organizations wrote to Congress in opposition to a tax system that imposes a near zero percent tax rate on offshore profits -- also known as a "territorial" tax system.