No Tax Breaks for Outsourcing Act Has Support of 100+ Legislators, Backing of at least 90 Organizations
WASHINGTON, DC – The FACT Coalition welcomed the introduction of legislation Thursday by Representative Lloyd Doggett (D-TX) and Senator Sheldon Whitehouse (D-RI) to combat multinational corporate tax avoidance. The Act would equalize the foreign and domestic tax rate – ensuring corporations pay at least the statutory rate in every country in which they operate – and repeal deductions that offer incentives to corporations to move real jobs and operations overseas.
“Current loopholes in the U.S. international tax system abet multinational corporations in avoiding taxes they would otherwise be required to pay,” said Ian Gary, executive director of the FACT Coalition. “The No Tax Breaks for Outsourcing Act will remove incentives to move U.S. jobs abroad; level the playing field for small businesses; and move us toward a fairer tax system that works for all.”
“The Biden Administration has made clear its intention to work with governments around the world to halt the global race to the bottom on taxes, in part to help fund the U.S. economic recovery from the COVID-19 pandemic,” Gary said. “This Act complements the Administration’s agenda on U.S. tax reform and in international tax negotiations and will help tackle the worst of offshore corporate tax haven abuse.”
In addition to equalizing the foreign and domestic corporate tax rates and repealing deductions on certain overseas investments, the No Tax Breaks for Outsourcing Act (H.R. 1785 / S. 714) would eliminate the tax break for foreign oil and gas extraction income and institute a number of provisions aimed at combating “inversion” practices in which corporations artificially move their tax address abroad to avoid U.S. liability.
This legislation is backed by more than 90 organizations, drawing strong support from labor unions, small business organizations, think tanks, and a diverse coalition of civil society organizations.
Notes to Editor:
- Click here to read a press release from Rep. Doggett and Sen. Whitehouse.
- Click here to read the letter from 90 national organizations supporting the No Tax Breaks for Outsourcing Act.
- Click here to read a FACT sheet on the No Tax Breaks for Outsourcing Act.
- Click here to consult the 2021 Corporate Tax Havens Index, which demonstrates the worst offenders among low-tax jurisdictions, many of which attract U.S. multinational tangible and intangible investments.