Alternative Group of Lawmakers Unveils Proposals that Would End the Offshore Gaming
WASHINGTON, D.C. — The Treasury Department announced that it would maintain an important rule to curb offshore tax avoidance Wednesday, a move that stands in contrast to the administration’s proposals to make it easier to avoid taxes by booking profits offshore, according to the Financial Accountability and Corporate Transparency Coalition (FACT Coalition), 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. Across town, another group of lawmakers unveiled proposals Wednesday afternoon, which (among other things) would end the ability for multinational corporations to defer paying taxes on the profits they book offshore.
Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:
“We appreciate the administration’s decision to preserve an important safeguard against offshore tax dodging today. However, Treasury’s decision to maintain the modest rule against ‘earnings-stripping’ stands in stark contrast to its own framework for overhauling that tax code — which would open the largest offshore tax loophole in American history by moving to a so-called ‘territorial’ tax system. This afternoon, a group of lawmakers unveiled an alternate approach to fixing the U.S. tax code that would end the ability of multinational corporations to game the system with accounting gimmicks. The administration and congressional leaders should use that proposal — which stops giving multinationals an advantage over wholly domestic and small businesses — as a model for sensible reform.”
Deputy Director, The FACT Coalition
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