Bloomberg: Democrats Target GOP Tax Changes They Say Encourage Outsourcing
March 13, 2019
Representative Lloyd Doggett and Senator Sheldon Whitehouse are introducing two bills Wednesday that would effectively repeal some provisions of the Republican tax overhaul of 2017 that the Democrats say encourage outsourcing.
- Doggett, of Texas, and Whitehouse, of Rhode Island, are pushing legislation that would stop companies from paying lower tax rates when they earn income offshore rather than in the U.S., something that has encouraged companies to locate facilities and workers outside the U.S.
- The Democrats are also introducing legislation that would prevent companies from booking profits in tax havens, such as the Cayman Islands or Bermuda
- The bills could be the basis for Democratic plans to unwind key aspects of the 2017 Republican tax overhaul
- The House Ways and Means Committee plans to hold hearings reviewing how the the tax overhaul has impacted how U.S. companies pay tax globally; a date hasn’t yet been announced