Joint Letter to Congress from 100-Plus Groups Opposing “Territorial Tax System”

The FACT Coalition joined 100 other groups in sending a letter to Congress on Monday, October 2, 2017 opposing a proposal to allow multinationals to pay low-to-no taxes on the profits they booked offshore, also known as a “territorial tax system.”  A press release about the letter is available here.

The full letter can be read below or downloaded here.

____________________

Download Letter as PDF

100 Groups Opposing a Territorial Tax System Proposed by
The White House & Congressional Leaders

October 2, 2017

Dear Member of Congress:

We urge you to reject a proposal to give U.S. multinational corporations a huge tax break for sending jobs offshore and a huge loophole to help them avoid paying taxes.

President Trump and Republican leaders in Congress want to allow multinational corporations to pay no U.S. taxes on their offshore profits. This is called a “territorial tax system.”

It is an incredibly bad idea. Ending taxation of offshore profits would give multinational corporations an incentive to send jobs offshore, thereby lowering U.S. wages. It would also be a giant loophole for corporations to use accounting gimmicks to move their profits to tax havens, resulting in the loss of billions of dollars in tax revenue for the United States.

Ending taxation of offshore profits would rig the rules in favor of multinational corporations, give them a competitive advantage over domestic businesses, and make our tax system more complicated.

We cannot afford to give multinational corporations a giant loophole to avoid paying their fair share of taxes at a time when we need more revenue to create jobs rebuilding infrastructure, educating our children, expanding healthcare coverage, researching new medical cures, and ensuring a secure retirement.

Voters are unalterably opposed to a territorial tax system. Three-quarters of Americans say they would oppose a tax system that does not tax offshore profits. A June 2017 Hart Research poll found that 32 percent of respondents believe that foreign profits of U.S.-based companies should be taxed at a higher rate than their U.S. profits while another 40 percent believe they should be taxed at the same rate. Only 8 percent believe foreign profits should be taxed at a lower rate, and only four percent said they should not be taxed at all — which is what a territorial tax system would do.

Please see this fact sheet (http://bit.ly/2hCiVn9) from the Institute on Taxation and Economic Policy for a more detailed explanation of why a “territorial tax system” would rig the rules for multinational corporations and against American businesses and working people.

We urge you to reject this terrible idea.

Sincerely,

A. Philip Randolph Institute

ActionAid USA

Agenda Project

Alliance for Retired Americans

Amalgamated Transit Union

American Family Voices

American Federation of Government Employees (AFGE)

American Federation of Labor and Congress of Industrial Organizations (AFL–CIO)

American Federation of Musicians of the United States and Canada

American Federation of State, County and Municipal Employees (AFSCME)

American Federation of Teachers

Americans for Democratic Action (ADA)

Americans for Tax Fairness

Asia Initiatives

Asian Pacific American Labor Alliance

As You Sow

Brotherhood of Railroad Signalmen

Campaign for America’s Future

Center for Biological Diversity

Center for Community Change

Center for Popular Democracy

Center of Concern

Citizens’ Environmental Coalition

Coalition of Black Trade Unionists

Coalition of Labor Union Women

Coalition on Human Needs

Communications Workers of America

Congregation of Our Lady of Charity of the Good Shepherd, US Provinces

Demand Progress

Earth Action, Inc.

EG Justice

Economic Policy Institute Policy Center

Fair Share

Financial Accountability & Corporate Transparency (FACT) Coalition

Financial Transparency Coalition (FTC)

Fix Democracy First

Food & Water Watch

Franciscan Action Network

Friends of the Earth

Global Financial Integrity

Health Care for America NOW!

Hip Hop Caucus

I.A.T.S.E., International Alliance of Theatrical Stage Employees

Institute for Agriculture and Trade Policy

Institute for Policy Studies – Inequality Program

Institute on Taxation and Economic Policy

International Association of Machinists and Aerospace Workers

International Association of SMART, Sheet Metal, Air, Rail and Transportation Workers

International Brotherhood of Boilermakers

International Brotherhood of Teamsters

International Corporate Accountability Roundtable (ICAR)

International Federation of Professional & Technical Engineers (IFPTE)

International Labor Rights Forum (ILRF)

International Longshoremen’s Association

International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW

Islamic Society of North America

Jobs with Justice

Jubilee USA Network

Main Street Alliance

MomsRising

National Advocacy Center of the Sisters of the Good Shepherd

National Education Association

National Employment Law Project

National Federation of Federal Employees

National Organization for Women

National Priorities Project

National Women’s Law Center

NETWORK Lobby for Catholic Social Justice

New Rules for Global Finance

Other98

Our Revolution

Oxfam America

Patriotic Millionaires

Pax Advisory

People Demanding Action

People’s Action

Power Shift Network

Pride at Work

Progressive Change Campaign Committee

Progressive Congress Action Fund

Public Citizen

Responsible Wealth

Revolving Door Project

Rights and Accountability in Development (RAID)

RootsAction.org

Service Employees International Union

Social Security Works

Tax Justice Network USA

Tax March

The Hedge Clippers

The Language of Connection

The Leadership Conference on Civil and Human Rights

Unitarian Universalist Legislative Action Network

United Food & Commercial Workers International Labor Union

United for a Fair Economy

United Steelworkers (USW)

UNITE HERE

Wall-of-Us

Woodstock Institute

Working America

Worksafe

Download Letter as PDF