House Democrats Try to Put the Brakes on Sleazy Corporate Efforts to Avoid Paying Taxes

Corporate-tax-cheat

A group of nearly a dozen House Democrats have joined together to introduce a bill that would tighten one of corporate America’s favorite tax dodges.

The legislation is called the Stop Corporate Inversions Act, and it is designed to address the problem of corporations buying a smaller foreign business and moving their tax domicile overseas.

In a statement, House Democrats explained why this change is needed in the law, “Under current law, a corporate inversion will not be respected for U.S. tax purposes if 80 percent or more of the new combined corporation (incorporated offshore) is owned by historic shareholders of the U.S. corporation. The bill would make it harder for U.S. companies to invert by reducing this threshold from 80 percent or more to more than 50 percent. This would effectively require U.S. companies to merge with foreign companies that are roughly equal or larger in size in order to move their location for tax purposes outside the United States and, thereby, escape U.S. tax.”

House Ways and Means Committee ranking member Rep. Sander Levin (D-MI) said, “Corporate inversions are a growing problem, costing the U.S. tax base billions of dollars and undermining vital domestic investments. This egregious practice requires immediate action. This legislation would stop American companies from avoiding U.S. taxes simply by purchasing a smaller foreign company and moving their tax home offshore.”

“This bill is about fairness,” said Rep. Danny Davis (D-IL) said. “At its heart it says that America should not have two sets of rules: one for ordinary folks and one for those with armies of lawyers who can skirt and bend the law to avoid paying their fair share of taxes. This is a notion so fundamental to our democracy it seems it should be self-evident. The existence of the two sets of rules helped bring on the Great Recession that most of us are still struggling to recover from. This bill is not a cure-all but it is a common sense response to a very real and glaring inequity in our tax code.”

Remember this bill the next time that John Boehner or any other House Republican stands before the cameras and tells the country that we can’t afford to extend unemployment benefits, jobs bills, or better care for our veterans.

The reason why we can’t “afford” spending on infrastructure and education is that House Republicans are letting giant American corporations avoid paying millions of dollars in taxes.

If corporations are people, some of the biggest members of the corporate community are sleazy deadbeats. What the House Democrats proposed today is the sort of legislation that the country could look forward to if Democrats controlled Congress.

The issue isn’t about screwing corporations. It’s about getting deadbeats to pay their fair share. Regular folks have carried the load for too long. It is time for the free ride to end, and for wealthy corporations to stop dodging their taxes.

10 Replies to “House Democrats Try to Put the Brakes on Sleazy Corporate Efforts to Avoid Paying Taxes”

  1. I say let them leave. Their influence and their money is not wanted. Let some other country kick them out next.

    There will always be companys that grow up and take their place

  2. If corporations want to be people they need to pay taxes. Picking and choosing when you want to be a person and when you are a corporation is double standards. One way or the other. Corporations make money , therefore they need to pay taxes just as we, the people do.

  3. Whist I applaud your article I just have to say…….Ahem!!! Excuse me hasn’t America got its own Tax Protesters?????? This picture in your article is CLEARLY FROM BRITAIN

  4. THEY may not be needed or wanted, but their MONEY sure is! They can go as soon as they pay back all the taxes they CHEATED out of!

  5. They have it backwards.
    The corporations should be told to either bring the money back now at todays full tax rate because next year the rate goes up by 5% and every subsequent year it goes up by 5%.
    at a certain point the tax cheats lose the right to do business in the US and lose access to any Banking, Insurance or financial functions by any companies licensed in the US.
    Next they lose all copyright and patent protection. They become legal non entities.
    If they want to offshore their money we should treat them as the legal equililants of the off shored Gitmo detainees.

  6. While I support this legislation, I would also like to see all corporate subsidies end, as of yesterday.

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