Whitehouse Calls for Tax Fairness and an End to Tax Haven Abuse by Corporations

From the Whitehouse Press Office:

Congressman Doggett, Senator Whitehouse Introduce Stop Tax Haven Abuse Act

Washington, DC – Today, U.S. Representative Lloyd Doggett (D-TX), a senior member of the House Ways and Means Committee, and Senator Sheldon Whitehouse (D-RI), a member of the Senate Budget Committee, introduced the Stop Tax Haven Abuse Act. The bill closes a number of offshore tax loopholes, eliminates many tax incentives for U.S. companies to move jobs and operations offshore, and modifies rules on corporate inversions for businesses dodging U.S. taxes.

“While most Americans contribute their fair share to our national security and vital public services, some large corporations still are not,” said Doggett. “They revel in single digit effective tax rates, and in some years, many pay their lobbyists more than they pay in federal taxes. Corporations that renounce their citizenship not only invert their business operations but pervert our tax laws. This bill is a step toward righting some of these inequities and ensuring that taxpaying small businesses are provided a more level playing field.”

“Big corporations shouldn’t be allowed to play games with the tax code and benefit from shipping jobs overseas,” Whitehouse said. “This bill would force corporations that are dodging their responsibilities to pay their fair share of taxes, and create an even playing field for American companies that already play by the rules.”

The Joint Committee on Taxation has estimated that provisions similar to those in this bill would raise at least $278 billion in revenue over ten years. More than two dozen of the largest profitable corporations paid no federal taxes at all over a recent five-year period. Among the many provisions of this bill are some recommendations contained in President Obama’s previous Budget Proposals. Find a full summary of the Stop Tax Haven Abuse Act House version here.

The bill is one of three “tax fairness” measures introduced by Whitehouse today, which he hopes will help shape the upcoming debate on tax reform.

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2 thoughts on “Whitehouse Calls for Tax Fairness and an End to Tax Haven Abuse by Corporations

  1. corporations move offshore because of repressive and oppressive corporate tax rates. Reduce the rate and they will stay. Far better to deal with the 17 trillion dollar national debt–that’s 17 thousand billion dollars–and the $85,000 individual debt this means for us and our children and their children, than to raise more taxes that government wastes. Prime Minister Thatcher had it right,” socialism is wonderful until you run out of other people’s money.”

  2. Playing the game of giving corporate tax breaks to entice them to locate or stay, only encourages other places to offer even more tax breaks and so on. The result is fabulous wealth for the 1% but crumbling roads and bridges, inadequate transit, homelessness, skyrocketing tuition at public colleges, parks in disrepair, ugliness spreading, and more and more working people struggling to get by.
    Glad that Senator Whitehouse is trying to do something about this, but it also will take installing a work ethic and sense of community responsibility at EVERY level of our society.
    By the way a Journal on-line poll was about 50-50 on this, a psychologist friend tells me that many feel more important and empowered by sucking up to the rich and their interests.

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