For Immediate Release
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House Passes Bill that Offshores American Jobs and Profits
Bipartisan Voices Agree that H.R. 1 Will Increase Shifting of Production Overseas and Profits to Tax Havens.
WASHINGTON - The U.S. House of Representatives on Thursday passed 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.
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Founded in 2011, the Financial Accountability and Corporate Transparency (FACT) Coalition unites over 100 different civil society representatives from small business, anti-corruption, faith-based, government watchdog, human rights, investors, labor, public-interest, and international development organizations from across the ideological spectrum.
We seek an honest and fair international tax code, greater transparency in corporate ownership and operations, and commonsense policies to combat the facilitation of money laundering and other criminal activity by the financial system.