For too long multinational corporations have gamed the system through the use of tax havens, robbing taxpayers of untold resources while fattening the profits of rich CEOs and shareholders.
John,
Loopholes and perverse incentives in our tax system encourage multinational corporations to ship jobs offshore and to shift profits to tax havens to avoid paying their fair share in taxes here at home.
Now, President Biden has secured a historic agreement with nearly 140 countries to create a global minimum corporate tax rate of 15%, which will help shut down the use of offshore tax havens.[1] But we still need Congress to pass legislation to ratify this agreement!
As the House and Senate work to finalize the Build Back Better agenda, we are working to make sure it passes implementing legislation to establish this agreement as a floor, not a ceiling. We are also demanding that Congress go beyond this agreement and enact at least a 21% tax rate on the offshore profits of U.S. corporations, as proposed by President Biden. This would bring the rate much closer to the 28% rate Biden proposes for domestic profits. (Our long-range goal is to equalize the tax rates on foreign and domestic profits to create a level playing field for U.S. workers and communities.)
The Trump-GOP tax scam lowered the tax U.S. corporations pay on their foreign profits to just 10.5%, incentivizing corporations to ship jobs offshore and shift profits to tax havens.
For too long multinational corporations, especially high-tech and prescription drug corporations, have gamed the system through the use of tax havens, robbing taxpayers of untold resources while fattening the profits of rich CEOs and shareholders.
Every tax dollar not raised from multinational corporations is a dollar taken away from President Biden’s Build Back Better agenda, which would make healthcare, childcare, eldercare and housing more affordable; expand Medicare coverage to include dental, hearing and vision care; provide child tax credits that lift 40% of children out of poverty; provide universal pre-K education for toddlers and free public community college for students; fight the climate change imperiling our planet and our global economy; and improve the global competitiveness of the United States as a destination for investment.
We can win this, but only if we keep fighting—together!
Thank you for working for a tax system that grows U.S. jobs and invests in our families and communities.
Frank Clemente
Executive Director
Americans for Tax Fairness
[1] “Global Deal to End Tax Havens Moves Ahead as Nations Back 15% Rate,” New York Times, Oct. 8, 2021
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