Press Release: U.S. Cannot Afford Another Tax Break for Corps

America Cannot Afford Another Tax Break for Corporations;
Groups Representing Millions of Taxpayers from Across the Country Send a Message.

Washington – As Congress wrestles with a number of tax-related issues to close out the year, faith-based, small business, union and public interest organizations from California to Maine sent a letter to Senate and House leaders railing against a tax break that previously failed to produce jobs and largely benefited a small percentage of corporations. Not to be confused with the payroll tax holiday for workers, the corporate tax holiday would allow businesses to pay an extremely low rate of tax for money kept offshore – rewarding those who keep jobs and profits outside of the U.S. These groups, which represent over 15 million taxpayers, stand in square opposition to the large corporations and their lobbyists who seek this sizable tax break.

Groups from across the political spectrum have continued to debunk the myths that any corporate tax holiday will benefit the government, taxpayers, job creators or workers. In fact, they argue it would make matters worse.

An excerpt from the letter, which also signed by government transparency, tax, human rights, anti-corruption, environmental and economic justice groups, reads:

“If Congress repeats the 2004 holiday, multinational corporations will quite rightfully expect that another holiday will be enacted in a few years. They will have enormous incentive to engage in ever more aggressive tax schemes that move their profits to foreign jurisdictions. In fact, the 20 companies who repatriated the most earnings under the 2004 holiday are already anticipating the next holiday – they now have three times as much in foreign profits parked offshore as they did at the end of 2005.

We urge you to reject the proposals for a repatriation holiday. The multinationals who are lobbying hard for this tax break offer numerous reasons why you should give them this generous reprieve. But their plea for a repatriation holiday is nothing more than a blatant attempt to escape their tax obligations and shift the burden onto the taxpaying American public.”

The FACT coalition includes a broad range of organizations with an interest in seeing the loopholes closed due to their impact on jobs, critical programs, small businesses, human rights, corruption and national security. For a full list of member organizations and campaign information visit http://www.tjn-usa.org/current-campaigns.

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CONTACT: Bob Keener, 617-610-6766, bobkeener@businessforsharedprosperity.org