There is widespread agreement, across the political spectrum, that the gaming of the tax code by multinational corporations is a problem. When profits and jobs are shipped offshore, we not only harm the U.S. economy, we fuel a tax haven industry that drains wealth around the world. We seek to fix the problem of large, well-connected interests gaming the tax system.
Congress’ final reconciliation bill moves nearly every aspect of the tax code in the wrong direction, gutting essential programs and job-creating green energy incentives in favor of highly regressive tax cuts for wealthy individuals and multinational corporations.
Instead of undermining multilateral tax cooperation, Congress should address incentives in the U.S. tax code that encourage the offshoring of jobs and profits by American multinational companies.
Small steps in the right direction do not address the core problem of our international tax code: there is no reason to keep giving tax breaks to companies when they move profits and jobs overseas.
The House Ways and Means Committee’s draft tax bill extends trillions of dollars in wasteful and unpopular tax breaks, paving the way for massive cuts to vital health and other public services. Lawmakers must go back to the drawing board.
Whether effective or not, tariffs are meant to react to a very real problem: the decades-long collapse of what was once a dynamic U.S. manufacturing base. Our current tax policy has only made that problem worse.
By addressing unfair tax breaks given to U.S.-based multinational corporations, Congress can help level the playing field for wholly domestic businesses, end incentives for offshoring, and raise more than one trillion dollars in new revenues.
