Sen. Schumer: ‘If We Don’t Do Something, There Will Be A Huge Rush To Invert’

‘More Large U.S. Companies Are Effectively Renouncing Their U.S. Citizenship By Adopting A Legal Address Abroad’

BLOOMBERG: “Tracking Tax Runaways: More large U.S. companies are effectively renouncing their U.S. citizenship by adopting a legal address abroad. They’re being driven away by the highest corporate income tax in the developed world, and helped by a tax code so porous that they can choose from several means of escape. The most popular move, known as an ‘inversion,’ allows a company to change its country of incorporation without a change in majority ownership, management, or headquarters.” (“Tracking Tax Runaways,” Bloomberg, 3/1/2017)

• “Not long after the anti-inversion bill passed Congress in 2004, a new wave of inversions began, making use of exceptions to the law.” (“Tracking Tax Runaways,” Bloomberg, 3/1/2017)

• Since 2004, more than 50 companies have expatriated via inversion, spinoff, or other means such as sale to a leveraged-buyout firm. (“Tracking Tax Runaways,” Bloomberg, 3/1/2017)

SEN. SCHUMER: ‘If We Don’t Do Something, There Will Be A Huge Rush To Invert’

SEN. STABENOW: ‘We Have A Tax Code That Really Puts A Thumb On The Scales Against Our Workers’

SEN. CHUCK SCHUMER (D-NY): “If we don’t do something, there will be a huge rush to invert.” (“2 Senators Introduce New Anti-Inversion Bill,” The New York Times, 9/10/2014)

• SCHUMER: “I’m willing to compromise…. I’d rather have a bill done than have a political issue.” (“2 Senators Introduce New Anti-Inversion Bill,” The New York Times, 9/10/2014)

SEN. BERNIE SANDERS (I-VT): “…to my mind, not only is this tax inversion an outrage, we are losing now about $100 billion in federal revenue every year. Many of these large corporations are putting their money into the Kaman Islands and Bermuda and other tax havens. One out of four large profitable corporations today, Jake, pays zero in federal income tax.” (CNN, 8/26/2014)

• SANDERS: “Many of these corporations have absolutely no loyalty to the people of the United States or to our government. If they can make an extra buck by moving to the United Kingdom, their headquarters for the United Kingdom paying less in taxes that is what they will do. The danger as you've indicated is once one company starts doing it or many companies do it, other companies from a competitive perspective feel they have to do it, as well. When you see that kind of exodus or mass bolting out of the country for lower taxes, it is going to mean a sharp reduction in federal revenue, which means that the middle class pays more. We simply don't have the money to provide education or health care or infrastructure to the American people.” (CNN, 8/26/2014)

SEN. DEBBIE STABENOW (D-MI): “As we look at how we move forward to keep and expand the middle class, we have to look for ways in which we can support our workers and our businesses that are investing in America. I believe our workers can outcompete anybody as long as the rules are fair. There are a lot of ways we need to deal with the rules, but right now we have a tax code that really puts a thumb on the scales against our workers. … We have very serious issues. More and more of our companies are using this process called inversion.” (Sen. Stabenow, Congressional Record, S.4640-1, 7/21/2014)

REP. NANCY PELOSI (D-CA): “Some of them [companies] have 90 percent of their business here. But they're going offshore, inverging (ph), having inversion, so they don't have to pay their fair share of defense of our country -- of the defense of our country as well as the investments in the people of our country that help them make their profit.” (Rep. Pelosi, Press Conference, 7/31/2014)

FORMER PRESIDENT OBAMA: “[S]topping companies from renouncing their citizenship just to get out of paying their fair share of taxes is something that cannot wait.” (President Obama, “Weekly Address: Closing Corporate Tax Loopholes,” 7/26/2014)

• OBAMA: “[T]he best way to end this kind of irresponsible behavior is with tax reform that lowers the corporate tax rate, closes wasteful loopholes, simplifies the tax code for everybody.” (President Obama, “Remarks By The President On The Economy,” 4/05/2016)

FORMER TREASURY SECRETARY JACK LEW: “I urge Congress to move forward with anti-inversion legislation this year. Ultimately, the best way to address inversions is to reform our business tax system … Congress should not wait to act as inversions continue to erode our tax base.” (U.S. Treasury Department, Press Release, 4/04/2016)

• LEW: “Right now, our tax system rewards U.S. corporations when they buy foreign companies and then declare that they are based overseas.  This practice of corporations acquiring foreign businesses and then switching their citizenship outside the United States is known as inversions. … The best way to address inversions is through comprehensive business tax reform that includes specific anti-inversion provisions...” (“Remarks Of Secretary Lew At The Urban Institute,” 9/08/2014)

• LEW: “If we could do business tax reform, we would take away some of the pressures that drive companies to invert.” (Sec. Lew, Remarks, 10/7/2014)

• LEW: “…I've made clear that the real answer is tax reform because as long as we have a system where the United States has the highest statutory tax rate in the developed world, even though a lot of companies pay on taxes, it creates a very bad incentive.” (Sec. Lew, Bloomberg, 9/9/2014)