US lawmaker, Rep. Mark Pocan (D-WI), introduced two tax bills November 9 designed to take away tax benefits of corporate inversions to make the transactions less financially attractive.
H.R. 3934, the “Corporate Fair Share Tax Act,” seeks to reduce the ability of corporate groups to earnings strip after an inversion by limiting the deductions that a corporation may claim to the level at which the US entity’s share of interest on debt is proportionate to the US entity’s share of earnings, Poucan explained in a press release.
H.R. 3935, the “Putting America First Corporate Tax Act,” would require controlled foreign corporations to pay US taxes on active income beginning December 31, 2014, the Congressman said.
“It is wrong that Wall Street corporations are using tax loopholes to skirt their responsibilities while small business owners and hard-working Americans play by the rules,” said Pocan. “This legislation will eliminate a major incentive for corporations to leave the United States and ensure that companies pay their taxes on overseas profits immediately. We must stop corporate deserters from abusing the US tax system and force these companies to contribute their fair share,” he said.
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