TJN USA and FACT Coalition Issue Press Release on Corporate Tax Reform
October 26, 2011
“Territorial” Tax and “Revenue-Neutral” Corporate Tax Reform Opposed by National Organizations, Labor Unions, and Small Business Groups
Washington – Labor unions, small business associations and good government groups have lined up to oppose proposals to exempt corporations' offshore profits from U.S. taxes on a permanent basis (by enacting a "territorial" tax system) or temporary basis (by enacting a "repatriation" amnesty).
These organizations also oppose any overhaul of the corporate income tax that fails to raise significant revenue. In stark contrast to recent proposals put forth by House Ways and Means Committee Chairman, these groups urge lawmakers to reject any corporate tax reform that exempts corporations’ offshore profits or that fails to raise significant revenue.
In a letter, the groups implore the Members of the Committee to do four things:
- Reject any proposal to exempt U.S. corporations’ offshore profits from U.S. taxes permanently (by enacting a “territorial” tax system).
- Reject any proposal to exempt U.S. corporations’ offshore profits from U.S. taxes temporarily (by enacting a “repatriation” amnesty).
- Require any overhaul of the corporate income tax to raise significant revenue.
- Require that the revenue-positive result be estimated using traditional revenue scoring procedures as opposed to controversial alternative procedures (often called “dynamic” scoring).
These stances put these organizations at odds with Chairman Camp, who has just proposed a territorial tax system, as well as both Democrats and Republicans in Congress and even officials in the Obama administration who are rumored to be gearing up to propose a corporate tax overhaul that includes a territorial system and is revenue-neutral.
The labor unions signed onto the letter, including ALF-CIO, SEIU and several others, have been speaking with lawmakers for months about their concern that the these changes would only encourage companies to shift more operations and jobs overseas. The small business groups have been pleading with Congress to even the playing field by ending the ability of their multinational competitors to reduce their tax bills by shifting profits into offshore tax havens. The good government groups include organizations like the Tax Justice Network, which works to end offshore tax abuses, and Citizens for Tax Justice, which will release a report on November 3 detailing what Fortune 500 companies actually pay in U.S. corporate income taxes.
Read the FACT sheet on Tax Haven Abuse here. By the Numbers!
The FACT coalition includes a broad range of organizations with an interest in seeing the loopholes closed due to their impact on jobs, critical programs, small businesses, human rights, corruption and national security. For a full list of member organizations and campaign information visit http://www.tjn-usa.org/current-campaigns.