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Corporate Tax Amnesty Bill to Fund an Infrastructure Bank Slammed in Letter to U.S. House of Representatives

FOR IMMEDIATE RELEASE: July 16, 2013

Contact:

Frank Clemente: 202-441-9818 (Cell); @4TaxFairness (Twitter); fclemente@AmericansforTaxFairness.org

Dan Smith, U.S. PIRG202-461-3822 (O); 203-520-1427 (M); dsmith@pirg.org

Corporate Tax Amnesty Bill to Fund an Infrastructure Bank Slammed in Letter to U.S. House of Representatives

 “Repatriation Tax Holiday” Would Reward Tax Dodgers, Groups Say

 WASHINGTON, D.C. – Proposed House legislation that would grant a tax amnesty to multinational corporations bringing home billions of dollars of profits now offshore in order to fund an infrastructure bank was strongly criticized today in a letter to House members signed by 30 national organizations working to ensure that big corporations pay their fair share of taxes.

The Partnership to Build America Act, H.R. 2084, introduced by Rep. John Delaney (D-MD), would reward big corporations that avoid taxes through overseas accounting tricks, encourage more future offshore tax dodging, fail to create jobs in America and increase the deficit, according to the letter’s signers, which include AFSCME, MoveOn.org, the National Education Association and the National Committee to Preserve Social Security and Medicare (full list of signers is below).

This most recent push by corporations for the tax holiday is “nothing more than a blatant attempt to escape their tax obligations and shift the burden onto taxpaying Americans, small businesses and domestic firms,” the groups wrote.

The letter signers emphasized that past amnesties have failed to deliver for the American people, instead merely enriching executives and shareholders. The requirement in the current bill that corporations “repatriating” their profits invest part of them in an infrastructure bank does nothing to improve the legislation, since several tax dodging corporations will control the proposed bank, inviting collusion and financial game playing.

Many of the companies bringing home profits under a 2004 repatriation amnesty actually reduced employment, according to the Senate Permanent Subcommittee on Investigations; of the corporate cash repatriated, 92 percent went to stock buybacks, executive bonuses and dividends, according to a study by the National Bureau of Economic Research, the letter noted.

Endorsing the concept of an infrastructure bank as a stand-alone idea, the letter signers wrote: “Congress should finance infrastructure investment by closing offshore tax loopholes, not by encouraging corporations to use them.”

The letter was coordinated by Americans for Tax Fairness and the Financial Accountability and Transparency (FACT) Coalition.

LETTER SIGNERS

American Federation of State, County and Municipal Employees

Alliance for a Just Society

American Federation of Government Employees

American Federation of Teachers

Americans for Tax Fairness

Campaign for America’s Future

Center for American Progress

Center for Effective Government

Citizens for Tax Justice

Coalition on Human Needs

Economic Policy Institute

Financial Accountability & Corporate Transparency (FACT) Coalition

Global Financial Integrity

JubileeUSANetwork

LeadershipCenter for the Common Good

Leadership Conference on Civil & Human Rights

MoveOn.org

National Committee to Preserve Social Security and Medicare

National Council of La Raza

National Education Association

National People’s Action

National Women’s LawCenter

New Rules for Global Finance

PICO National Network

Service Employees International Union

Tax Justice Network USA

United for a Fair Economy

USAction

U.S. PIRG

Working America

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