For Immediate Release
New Bill Removes Tax Incentives to Move Jobs, Profits Offshore
“No Tax Breaks For Outsourcing Act” would close loopholes in tax code that encourage offshore tax avoidance.
WASHINGTON - New legislation introduced Tuesday would equalize the tax rates for domestic businesses and multinational corporations — reducing the tax incentives to shift jobs and profits overseas that were enacted under the recent tax overhaul, according to the Financial Accountability and Corporate Transparency (FACT) Coalition.
Sponsored by House Ways and Means Tax Policy Subcommittee Ranking Member Lloyd Doggett (D-TX), and Senate Finance Committee Member Sheldon Whitehouse (D-RI), the 'No Tax Breaks for Outsourcing Act' would equalize the tax rates for profits booked at home and abroad, repeal the tax deduction on profits earned from investments overseas, eliminate the tax break for foreign oil and gas extraction income, and institute a number of provisions aimed at combatting corporate inversions.
Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:
“This bill ends the backward incentives created by the new tax law to move jobs, profits, and operations overseas.
“The simple fix — to even up the rates — levels the playing field for domestic companies and reverses some of the worst damage caused by the new law.
“It wasn’t that long ago that there was justifiable outrage over tax rules that allowed billionaire Warren Buffett to pay a lower tax rate than his secretary. We should be equally concerned that the new law means the richest multinationals will pay lower rates than their smaller, wholly domestic counterparts. The new system is backwards.
“Under the old rules, companies paid the same U.S. tax rate whether they booked their profits in Indiana or Ireland. Now, multinationals pay a 21% rate on the profits they book in the U.S. but a 10.5% rate on the profits they book overseas. The real kick in the gut for workers is that companies can get even that discounted overseas rate down to 0% if they move enough production and jobs offshore.
“The ‘No Tax Breaks for Outsourcing Act’ is an important response to the tax law’s misguided incentives for companies to move jobs, profits, and operation overseas.”
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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.