04/21/2017 | Press release | Distributed by Public on 04/21/2017 13:21
WASHINGTON, D.C. - U.S. Rep. Sander Levin (D-MI) today issued the following statement in response to President Trump's executive order directing a review of Department of Treasury regulations, including regulations on corporate inversions:
'Corporate inversions hurt our tax base and damage our economy. Signaling that restrictions on such inversions might be eliminated or watered down is not putting America first - it's telling companies it is acceptable for them to renounce their citizenship by moving their addresses overseas to avoid paying U.S. taxes, while still reaping the benefits of effectively being based in the U.S.
'Current Treasury regulations on deterring corporate inversions are designed to make it harder for large multinational companies to avoid paying U.S. taxes and to reduce the incentives for U.S. companies to shift income and operations abroad. These regulations, which took into account extensive comments from the public, as well as meetings with Republicans and Democrats in Congress, attempt to prevent corporations from leveraging a U.S. company with debt and 'stripping' the U.S. tax base through deductible interest payments.
'At their core, the inversion regulations are about bringing fairness to our tax system. We must not backtrack on this basic principle. '
Rep. Levin authored the 'Stop Corporate Inversions Act,' introduced in the 113th and 114th sessions of Congress, designed to discourage corporate inversions.