Bill Would End Island Vacations for Corporate Taxes

by Mike Hall – Reposted from the AFL-CIO NOW Blog

A Senate bill introduced this week today would prevent some of the worst tax dodging tactics by corporations that use offshore tax havens and also raise about $155 billion in additional revenue over 10 years.

Chief sponsor Sen. Carl Levin (D-Mich.) says “Overwhelmingly, Americans tell us: Close those loopholes down.”

Among other provisions, the bill (S. 2075), known as the CUT Loopholes Act, would:

  • Give the U.S. Treasury Department the authority to combat tax haven banks and jurisdictions that help U.S. clients hide assets and dodge U.S. taxes;
  • Crack down on offshore corporations that are managed from the U.S. from claiming foreign status to dodge taxes;
  • Eliminate tax incentives for moving U.S. jobs overseas or for transferring intellectual property offshore.

Dan Smith, Tax and Budget Associate for U.S. PIRG says the bill:

goes a long way in making sure corporations play by the same rules as ordinary taxpayers. Our tax code is currently riddled with loopholes that serve no public purpose and allow wealthy special interests to shift their tax burden to the rest of us.

PIRG activists will deliver postcards like the one above to lawmakers next week. Click herefor a detailed summary of the bill.