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WASHINGTON, D.C. – U.S. Representative Marion Berry (D-AR, 1st) and Congresswoman Rosa DeLauro offered an amendment today that would have prevented the federal government from contracting with companies that locate overseas to avoid paying U.S. taxes. The amendment, which was defeated by a vote of 36 - 22, would ensure that the U.S. government prioritizes American companies in the contracting process.
“In America we play by the rules and punish those who denounce responsibility for personal gain,” said Congressman Berry. “It is simply un-American to reward companies with billions of dollars in contracts who put up a mailbox overseas to avoid paying U.S. taxes. This policy not only rewards dishonest business practices, but puts American companies at a disadvantage for government contracts.”
Under the current tax code, some U.S. corporations have established subsidiaries in tax haven countries like Bermuda to avoid tax liability. This loophole gives foreign subsidiaries a cost advantage in the competitive bidding process for government contracts. Congressman Berry and Congresswoman DeLauro secured legislation last Congress that prevents the Department of Homeland Security (DHS) from issuing future contracts to companies headquartered offshore for the purpose of avoiding tax liability. Today’s amendment would extend that ban to future contracts within key agencies including the Department of Transportation, the Department of the Treasury, and the Department of Housing and Urban Development.
“We must put an end to this unfair playing field that hurts American companies,” said Congressman Berry. “I find it reprehensible that our leadership continues to funnel taxpayer dollars into the hands of companies that refuse to pay their fair share.”
Today’s amendment was offered today during a meeting of the full Appropriations Committee as part of the Fiscal Year 2006 Transportation, Housing and Urban Development, and Independent Agencies Appropriations bill. Congressman Berry will continue to work with Congresswoman DeLauro and other members to build enough support until the measure is passed in future years. |
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