Foster Votes To End Tax Giveaways For Companies That Ship Jobs Overseas
Washington, D.C. – Today, Congressman Bill Foster voted for legislation to end tax giveaways for companies that ship jobs overseas. Foster voted for the Democratic-backed provision which would end corporate giveaways by ending “corporate inversions,” a process corporations have used to avoid paying U.S. taxes by reincorporating as a “foreign” company.
“Hard-working Illinoisans pay their fair share of taxes; corporations should have to do the same,” said Foster. “These loopholes are costing taxpayers billions of dollars and creating an unfair advantage over businesses large and small that remain in this country and are paying their fair share. We need to stop incentivizing companies that ship jobs overseas and do more to support innovators and entrepreneurs who are keeping jobs here at home.”
Current law allows companies to renounce their United States citizenship and reincorporate by acquiring a foreign company and transferring more than 20 percent of shares to foreign owners. This practice is causing the treasury to lose billions of dollars in taxes.
In the last decade there have been more than 40 corporate inversions. The Treasury Department has estimated that a budget proposal from the President to eliminate inversions would raise $17 billion over the next decade.