Bipartisan Voices Agree that H.R. 1 Will Increase Shifting of Production Overseas and Profits to Tax Havens
WASHINGTON, D.C. – 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.
Deputy Director, The FACT Coalition
+1 202 810-1334
Notes to Editor:
- Read an online version of this press release.
- Read this fact sheet from ITEP on “The Consequences of Adopting a Territorial Tax System”.
- Read FACT’s November 16th statement: “ Johnson (R-WI): Senate Tax Bill Incentivizes Offshoring of Jobs and Production”