| Congressman Richard E. Neal's Remarks |
FEBRUARY 5, 2003
CONGRESSMAN RICHARD E. NEAL
SENATOR HARRY REID AND SENATOR CARL LEVIN
INTRODUCE LEGISLATION TO STOP U.S. COMPANIES
FROM INCORPORATING OFFSHORE TO AVOID PAYING INCOME TAXES
(WASHINGTON) Congressman Richard E. Neal (D-MA), Senator Harry Reid (D-NV) and Senator Carl Levin (D-MI) held a press conference in the U.S. Capitol today to introduce legislation to prevent companies from avoiding the U.S. income tax by relocating in a tax haven. The Corporate Patriot Enforcement Act would deny tax benefits to former American companies that reincorporate offshore to avoid paying taxes. According to the Joint Committee on Taxation, enacting this bill would save over $4 billion for U.S. taxpayers.
Trading in their U.S. citizenship, these companies set up mere paper entities in tax and regulatory havens, with actual headquarters - the CEO and all essential personnel - still remaining in the U.S., enjoying our benefits and protections. Closing this loophole will discourage further companies from fleeing offshore, protecting federal and state treasuries.
Congressman Neal, a senior member of the House Ways and Means Committee and the Budget Committee, first introduced the Corporate Patriot Enforcement Act during the last session of Congress. His bi-partisan bill had 152 co-sponsors. A discharge petition filed on this bill garnered 187 signatures.
"During the last Congress, the House Republican leadership let the clock run out on this issue by not bringing it to the floor for a straight up or down vote. Their failure to act on this bill was indefensible. As a result, more than two dozen corporations continue to exploit this egregious tax loophole at the expense of ordinary Americans.
Simply put, this bill is about fairness. With the country fighting the war on terrorism, and on the brink of hostilities with Iraq, these greedy corporate traitors are moving offshore to escape paying their fair share of taxes. Despite public outrage, these companies continue to place profits over patriotism. And hard working Americans are left with a heavier tax burden.
I am pleased to join with Senators Reid and Levin today in an effort to stop corporate expatriation," said Congressman Neal.
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