WASHINGTON – A diverse coalition of 56 national organizations released a letter Tuesday to Sen. Harry Reid (D-NV) and Sen. Ron Wyden (D-OR), writing it is urgent for Congress to “stop the hemorrhaging of precious tax dollars through this [corporate inversions] tax dodge.” Letter signers ranged from America’s largest unions to leading advocacy, social justice, Netroots and religious justice groups.
The letter was coordinated by Americans for Tax Fairness, a coalition of 425 national and state organizations.
Excerpts from the letter follow:
“Our top priority is for Congress to enact the Stop Corporate Inversions Act (S. 2360), sponsored by Sen. Carl Levin and 22 other senators. This measure would end the current practice of treating inverted corporations as foreign companies even when they have not left the United States in any real sense.
“We also urge action to stem “earnings stripping” for inverted firms, whereby a U.S. company borrows money from its new foreign parent in order to reduce its taxable income here at home and shift its profits offshore. Senators Schumer and Durbin have proposed legislation that would partially address this tax dodge.
“We should no longer provide generous taxpayer-funded contracts and subsidies to corporations that abandon America. Sen. Levin’s No Federal Contracts for Corporate Deserters Act (S. 2704) would ban firms that change their corporate address to a tax haven from receiving government contracts. Congress should also require that firms leaving here pay unpaid taxes on past profits held offshore. U.S. companies enjoy the privilege of deferring payment of their taxes on offshore earnings, which in effect grants them a no-interest loan from taxpayers that should be repaid if corporations re-incorporate elsewhere.”
Americans for Tax Fairness is a diverse coalition of 425 national and state organizations that collectively represent tens of millions of members. The organization was formed on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. ATF is playing a central role in Washington and in the states on federal tax-reform issues.