U.S. Senate Majority Whip Sen. Dick Durbin (D-IL), U.S. Sen. Jack Reed (D-RI), and U.S. Rep. Rosa DeLauro (D-CT) reintroduced this week a bill seeking to extend the ban on federal contracts for inverted corporations, eliminating the annual appropriations process while advancing to permanent law.
The American Business for American Companies Act, a means of addressing corporate inversions, enables domestic companies to shift corporate citizenship from the United States to a low-tax foreign jurisdiction while keeping their headquarters in America.
“When companies choose to invert and shirk their share of taxes, they shouldn’t be rewarded with government contracts,” Durbin said. “Simply put, it’s not fair. It’s time Congress closed this loophole once and for all.”
The bill would also provide authority for the agencies to prevent subcontracts with inverted corporations and joint ventures using subcontracts and joint ventures to evade the ban.
“Congress must close inversion loopholes to protect American taxpayers and businesses that pay their fair share and ensure we can meet our national defense, infrastructure, and workforce needs,” Reed said. “This legislation would be an important step towards ending the corporate shell game that allows some companies to shift their address abroad in order to reduce their taxes while remaining in the U.S. and increasing the financial burden on American taxpayers.”