The Financial Accountability and Corporate Transparency Coalition (FACT Coalition) sent a letter to Rep. Mark Pocan supporting H.R. 2057 which should serve as a template for positive tax reform. The full letter can be read below or downloaded here.
May 17, 2017
The Honorable Mark Pocan
United States House of Representatives
1421 Longworth House Office Building
Washington, DC 20515
RE: Tax Fairness and Transparency Act of 2017 (H.R.2057)
Dear Representative Pocan,
We write on behalf of the Financial Accountability and Corporate Transparency Coalition (FACT Coalition) to thank you for your leadership in introducing the Tax Fairness and Transparency Act of 2017 (H.R.2057), which should serve as a template for positive tax reform.
The FACT Coalition is a non-partisan alliance of more than 100 state, national, and international organizations working toward a fair tax system that addresses the challenges of a global economy and promoting policies to combat the harmful impacts of corrupt financial practices.
A common theme from both Democrats and Republicans in the recent election was the increasing problem that multinational companies are moving money and jobs offshore. These practices are encouraged by loopholes in the tax code, which encourage companies to move. These loopholes should be closed.
Some of the plans from Congress are likely to make matters worse by expanding the loopholes that got us into the mess we are in today. These plans are in direct contradiction with the clear message from the election that we certainly should not be subsidizing companies to move offshore.
In contrast, H.R.2057 offers three straightforward and important steps that would dramatically cut back on the gaming by multinationals — gaming that costs honest taxpayers an estimated $135 billion per year. The Tax Fairness and Transparency Act will:
- Stop giving multinationals an advantage over wholly domestic and small businesses, by ending the loophole known as “deferral”;
- Make it harder for U.S. companies to claim foreign residence simply to dodge taxes, by strengthening safeguards against “earnings-stripping”; and
- Ensure multinationals play by the rules by publicly reporting their profits and taxes paid on a country-by-country basis.
Taken together these provisions are critical if we are to fix the problem of large, well-connected interests gaming the tax system. That is why the FACT Coalition is proud to support the Tax Fairness and Transparency Act.
Thank you again for your leadership in protecting honest taxpayers from those who seek to shirk their civic responsibility. For more information, please feel free to contact Clark Gascoigne at [email protected]
The FACT Coalition
The FACT Coalition
cc: The Honorable Kevin Brady, Chairman, House Committee on Ways and Means
The Honorable Richard Neal, Ranking Member, House Committee on Ways and Means
The Honorable Peter Roskam, Chairman, Subcommittee on Tax Policy
The Honorable Lloyd Doggett, Ranking Member, Subcommittee on Tax Policy
- For a full list of FACT members, see: https://thefactcoalition.org/about/coalition-members-and-supporters/
- Merle, Renae. U.S. companies are saving $100 billion a year by shifting profits overseas, report says. The Washington Post. May 10, 2016. http://wpo.st/gIwp1 (accessed August 1, 2016).
About the FACT Coalition
The Financial Accountability and Corporate Transparency (FACT) Coalition is a non-partisan alliance of more than 100 state, national, and international organizations working toward a fair tax system that addresses the challenges of a global economy and promoting policies to combat the harmful impacts of corrupt financial practices.
1225 Eye St. NW, Suite 600 | Washington, DC | 20005 | USA
+1 (202) 827-6401 | @FACTCoalition | www.thefactcoalition.org