House Guts Safeguard, Increases Offshoring Incentives in Tax Bill

FACT Coalition Spokespeople Available to Comment on Tax Bills and Paradise Papers

WASHINGTON, D.C. — The U.S. House Ways and Means Committee’s amendments to the proposed tax legislation Monday evening nearly eliminated a safeguard in the tax bill meant to discourage some shifting of profits offshore by multinational corporations, according to a score by Congress’s Joint Committee on Taxation (JCT). The safeguard was originally expected to raise $154.5 billion, but the JCT estimates that the revised language now raises only $7 billion ($147.5 billion less). The change increases the incentives in the legislation that will encourage multinational corporations to shift jobs and profits offshore, according to the Financial Accountability and Corporate Transparency (FACT) Coalition.

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

“As we have noted before, this bill has always been a gift to multinational corporations that dodge taxes by shifting jobs and profits offshore.

“Now, the one real safeguard in the plan, which would have made it a little harder for corporations to artificially book their U.S. profits overseas in tax havens, is all but gone. As a result of last night’s change, the estimated revenue generated from this provision dropped 95% from $154 billion to $7 billion.

“As the Paradise Papers stories continue to expose how multinational corporations abuse tax havens to dodge their taxes, the House is marking up a bill that will make the offshore tax haven problem worse.

“Individuals and small businesses will get stuck with the tab left by corporations that move jobs and profits to tax havens.   Multinational corporations should pay the same rate whether they book their profits in Indiana or Ireland.”

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Journalist Contact:

Clark Gascoigne
Deputy Director, The FACT Coalition
+1 202 827-6401
cgascoigne@nullthefactcoalition.org

Notes to Editor: