The so-called “fiscal cliff” due to take effect in January includes a variety of expiring tax cuts, including the Bush tax cuts, and $110 billion in automatic spending cuts. Economists generally agree that ending the Bush tax cuts for the richest 2 percent won’t threaten our economy, but the automatic spending cuts, often called sequestration, does threaten the economy.
WASHINGTON – Seeking to help step back from the “fiscal cliff,” Sen. Carl Levin, D-Mich., chairman of the Senate Permanent Subcommittee on Investigations, has written to congressional and administration leaders on the need to address offshore tax abuses as part of a balanced deficit-reduction package.
“Closing these loopholes would not only produce significant revenue to help reduce the deficit and prevent sequestration, it would strengthen tax fairness and remove tax incentives to move U.S. business, jobs, and profits offshore,” Levin writes. He identifies 10 offshore tax loopholes identified in more than a decade of investigative work by his subcommittee; closing those loopholes could reduce the deficit by hundreds of millions of dollars over 10 years.
Levin wrote to the leaders of the congressional tax-writing committees; Senate leadership; colleagues involved in bipartisan negotiations aimed at avoiding the fiscal cliff; Treasury Secretary Timothy Geithner; and White House economic adviser Gene Sperling.
Download Levin’s letter and background materials on the 10 offshore tax loopholes. [PDF].