Bipartisan Voices Agree that Senate Bill Will Increase Shifting of Production Overseas and Profits to Tax Havens
WASHINGTON, D.C. – The U.S. Senate on Saturday passed its own version of the “Tax Cuts and Jobs Act” — legislation that will reward offshore tax haven abuse and increase the incentive to outsource American jobs abroad, according to the Financial Accountability and Corporate Transparency (FACT) Coalition. The bill gives a $450 billion tax break to corporations that have past profits stashed offshore. Moving forward, the bill applies a zero percent tax rate to profits booked in foreign countries compared to a 20 percent tax rate for profits booked in the U.S.
Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:
“Following in the footsteps of the House, Senate lawmakers chose to adopt legislation today that will outsource American jobs, reward the worst tax dodgers, and turbocharge offshore tax avoidance for years to come. There is bipartisan acknowledgement that granting corporations a lower tax rate on the profits they book offshore — as this bill does — will further incentivize the shifting of jobs, profits, and operations overseas.
“When multinational corporations shift profits and jobs to tax havens, it’s middle class Americans and small business owners that are forced to pick up the tab in the form of higher taxes, increased debt, or cuts to services they use. This bill checks all three boxes — increasing taxes on millions of middle class Americans, adding $1 trillion to the debt, and triggering automatic cuts to programs people rely on.
“It is now incumbent on the American people to stand up and ensure that the Conference Committee removes this wrong-headed, job-killing approach from its final proposal.”
In October, more than 100 organizations wrote to Congress in opposition to a tax system that imposes a zero percent tax rate on offshore profits — also known as a “territorial” tax system.
Deputy Director, The FACT Coalition
+1 202 827-6401
Notes to Editor:
- Read an online version of this press release.
- Read this fact sheet from ITEP on “The Consequences of Adopting a Territorial Tax System”.
- Read FACT’s November 16th statement: “ Johnson (R-WI): Senate Tax Bill Incentivizes Offshoring of Jobs and Production”