Wednesday, June 5, 2019
Three Democratic members of the United States Senate have introduced two tax bills designed to discourage US companies from shifting their operations overseas and establishing arrangements in low-tax jurisdictions.
The Removing Incentives for Outsourcing Act would:
The Disclosure of Tax Havens and Offshoring Act would require large corporations to disclose basic information on each of their subsidiaries, and country-by-country financial information on their subsidiaries in each country, including profit, taxes, employees, and tangible assets. While this information is already reported to the Internal Revenue Service under the OECD BEPS framework, the senators said that public disclosure of such data would shed additional light on how international tax laws are working and where corporations are locating their business activities and paying taxes.
The bills were introduced in the Senate on May 22, 2019, by senators Chris Van Hollen (D-MD), Amy Klobuchar (D-MN), and Tammy Duckworth (D-IL).
Similar proposals were introduced in the House of Representatives by Lloyd Doggett (D-TX) and in the Senate by Sheldon Whitehouse (D-RI), on March 13, 2019.