A new bill introduced by a pair of congressional Democrats hopes to end the tax advantages that President Donald Trump's tax reform bill provided to companies that offshore American jobs.
The bills, which were introduced by Rep. Lloyd Doggett of Texas and Sen. Sheldon Whitehouse of Rhode Island, are known as the No Tax Breaks for Outsourcing Act and the Stop Tax Haven Abuse Act. Both bill attempt to remedy provisions of the Trump tax reform bill that make it easier for companies to send jobs overseas. The No Tax Breaks for Outsourcing Act would accomplish this by guaranteeing that multinational companies pay the same tax rates on profits earned overseas as they do in the United States, while the Stop Tax Haven Abuse Act strives to eliminate offshore tax loopholes used by large corporations to move their money to overseas tax havens in order to avoid paying taxes in this country. That bill would also strengthen laws that punish illegal tax evaders including by empowering the Treasury Department to force foreign banks to respect American laws regarding disclosure of new bank accounts, requiring individuals who form shell companies to not engage in money laundering and streamlining the process by which the IRS investigates Swiss bank accounts.
"Who benefits from the Trump tax law? It’s a who’s who of who’s not you," Doggett told Salon. "The Trump tax law reflects his support for the Old Green Deal: keep stuffing green in the pockets of the superrich, whose pockets are already full."
In a statement, Whitehouse explained that "while President Trump talks big about creating American jobs, his tax law opened new loopholes that encourage companies to make investments overseas. We need to end these costly and harmful giveaways and level the playing field for businesses that grow jobs and raise wages here at home."
Despite repeatedly denouncing the offshoring of American jobs during his presidential campaign and depicting himself as a Republican who would protect American workers, Trump's tax bill has had glaringly obvious provisions to protect job offshorers from the get-go. In October, Salon spoke with another Democratic legislator, Sen. Martin Heinrich of New Mexico, about the details of Trump's tax bill.
"The international provisions in the Republican tax law were poorly designed," Heinrich told Salon. "The law creates a new incentive for companies to shift operations — and Americans jobs — overseas, and does not adequately protect American workers. Democrats can start by rewriting provisions like these to keep good-paying American jobs at home. We are also prepared to put forward smart, forward-looking policies to raise wages for American workers."
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