Introduced
by
To prohibit giving state subsidies or tax breaks to companies that have relocated their headquarters to a foreign country to avoid paying U.S. corporate tax rates on earnings generated by operations outside the U.S. (a practice called corporate “inversions”). The U.S. corporate tax rate is reportedly <a href="http://taxfoundation.org/blog/us-has-highest-corporate-income-tax-rate-oecd">the highest</a> among the 34 most economically advanced countries. U.S. companies that “repatriate” earnings from operations in another country pay the difference between that country’s rate and the higher U.S. rate, even though the firm’s competitors in the other country only pay that country’s taxes.
Referred to the Committee on Commerce
