Congressional Democrats recently introduced a bicameral law to remove offshore tax loopholes and generate billions in revenue by, among other things, improving tax enforcement and strengthening anti-money laundering laws.
The Stop Tax Haven Abuse Act, HR 1786 / S. 725 was approved on March 11th by US Representative Lloyd Doggett (D-TX), a member of the Ways and Means Committee, and US Senator Sheldon Whitehouse (D-RI), a member of the Finance Committee. The legislation aims to end the avoidance of offshore corporate taxes by targeting companies that make profits domestically but appear on the books in tax havens in other countries.
“This legislation would end the complex shell games that allow corporations and super riches to hide their profits in island tax havens, forcing working families and small businesses to make up the difference,” Doggett said. “Tax evasion is not a victimless crime. These gaping tax loopholes provide worrying incentives to invest overseas rather than domestically, to move jobs overseas and harm our communities, all while impairing our ability to pay for our national security and other vital public services. “
Lawmakers cited a study that estimated America lost $ 90 billion in revenue each year to offshore tax evasion. Closing the loopholes would restore much-needed revenue, improve the playing field for domestic businesses large and small, and increase public confidence in the US tax system.
“Hardworking American families are not given offshore tax havens to avoid paying taxes. Why would large multinational organizations and the ultra-rich have this evasive maneuver?” Whitehouse asked. “This bill would target major tax evaders and wealthy tax evaders and make tax laws fairer for those who do not have special access.”
Among numerous provisions, the bill would require tax avoiding businesses with gross revenues in excess of $ 100 million as opposed to the current $ 500 million to be subject to BEAT and other anti-abuse taxes need to reconcile. Preventive measures in the tax code. In addition, the measure would remove tax breaks for foreign oil and gas companies and fill gaps that allow partnerships with foreign partners to transfer revenues offshore.