News & Events

New Bill Removes Tax Incentives to Shift Profits and Operations Offshore

“No Tax Breaks for Outsourcing Act” Endorsed by 57 National Organizations, Sponsored by 80 Members of Congress

WASHINGTON, D.C. – Eighty lawmakers introduced legislation Wednesday that would equalize the tax rates for domestic businesses and multinational corporations — reducing the tax incentive to shift profits and operations overseas that were enacted under the recent tax overhaul, according to the Financial Accountability and Corporate Transparency (FACT) Coalition.

Sponsored by House Ways & Means Committee Member Lloyd Doggett (D-TX), and Senate Finance Committee Member Sheldon Whitehouse (D-RI), the No Tax Breaks for Outsourcing Act (H.R.1711 / S.780) would equalize the tax rates for profits booked at home and abroad, repeal the tax deduction on profits earned from investments overseas, eliminate the tax break for foreign oil and gas extraction income, and institute a number of provisions aimed at combatting corporate inversions.

Gary Kalman, executive director of the FACT Coalition, issued the following statement:

“The new tax law did cut taxes — especially for companies that move profits and operations overseas. The tax breaks for shifting profits offshore cost taxpayers billions of dollars, resulting in less funding for vital services, increases to the deficit, or higher rates for individuals and small businesses. The No Tax Breaks for Outsourcing Act would do exactly what it says — end the upside-down incentives and eliminate the benefits of tax haven abuse.”

The legislation has been endorsed by 57 national organizations in a letter submitted to Congress on Wednesday.

Rep. Doggett and Sen. Whitehouse also re-introduced their Stop Tax Haven Abuse Act (H.R.1712 / S.779) on Wednesday, which would plug several egregious tax loopholes and require multinationals to disclose tax information publicly on a country-by-country basis.  The Stop Tax Haven Abuse Act is also supported by the FACT Coalition.

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Journalist Contact:

Clark Gascoigne
Deputy Director, The FACT Coalition
+1 202 813-0290
cgascoigne@thefactcoalition.org

Notes to Editors:

  • Click here to read a press release from Rep. Doggett.
  • Click here to read the letter from 57 national organizations supporting the No Tax Breaks for Outsourcing Act.