Washington, D.C. – Today, after three weeks of the Treasury Department undertaking “extraordinary measures” to uphold the full faith and credit of the United States, Congressman Lloyd Doggett (D-TX), senior Member of the House Ways and Means Committee, and Senators Sheldon Whitehouse (D-RI), chair of the Senate Budget Committee and more than 100 House cosponsors—a majority of the House Democratic Caucus—and 15 Senators, introduced the No Tax Breaks for Outsourcing Act (H.R. 884). Were it not for the Trump tax law, the U.S. would not have hit the debt limit so soon. By ending the Trump law’s incentives for sending jobs and profits overseas, this bill would join the European Union, United Kingdom and South Korea in moving to implement the OECD global minimum tax agreement and stop the race to the bottom on corporate taxation. The bill would level the playing field for American workers and small businesses by making sure multinational corporations pay the same tax rate on profits earned abroad as they do in the United States.
“By ending Trump-GOP tax breaks, which encourage multinational corporations to both outsource good-paying American jobs and shift profits abroad, we can raise revenue, bring back American jobs, and make tax laws more fair for all,” said Congressman Doggett, senior Member of the House Ways and Means Committee. “Let’s add more jobs here in America and insist that profits earned from American consumers are taxed in America, not hidden in offshore tax havens. The No Tax Breaks for Outsourcing Act could recover hundreds of billions of dollars in corporate taxes rightly owed on those profits, which could be invested to promote even more economic growth here in the USA. Avoiding a debt limit crisis is not just about spending levels but also about closing the tax loopholes that have contributed so much to our deficits.”
“If Republicans hadn’t passed the Trump tax giveaway to benefit their wealthy campaign donors, we wouldn’t even be hitting the debt ceiling right now,” said Senator Whitehouse, Chairman of the Senate Budget Committee. “We have got to end the deficit-ballooning incentives the former president created for sending American jobs and profits overseas. Working people pay their fair share in taxes – multinational corporations can do the same.”
In 2021, Secretary Yellen led 130 countries in a historic agreement to ensure multinational corporations begin to pay a fair share of tax wherever they operate through a Global Minimum Tax. The No Tax Breaks for Outsourcing Act would implement this agreement by requiring American multinationals to pay the same tax rate on profits earned abroad as they do in the United States. It would apply this tax on foreign profits on a country-by-country basis to prevent companies from dodging taxes by setting up webs of subsidiaries in low-tax countries.
Former President Trump and Congressional Republicans promised their new tax bill would boost U.S. hiring without costing taxpayers, but tax experts say otherwise. One prominent here.
