WASHINGTON, DC—Representatives Rosa DeLauro (D-CT) and Lloyd Doggett (D-TX) today continued to their quest to ensure the federal government no longer awards contracts to corporate tax dodgers. The representatives won approval of an amendment banning contracts by any federal government entity with corporations that were incorporated in the United States, but have been reincorporated in the tax havens of Bermuda or the Cayman Islands.


The amendment was approved by a voice vote and is now a part of the Fiscal Year 2014 Financial Services and General Government Appropriations Act. Video of the floor debate can be viewed here. A vote on House passage of that bill is expected later this week.


Identical amendments are also a part of the Fiscal Year 2015 Transportation-Housing and Urban Development Appropriations bill, the Fiscal Year 2015 Energy and Water Appropriations bill, and Fiscal Year 2015 Department of Defense Appropriations bills. In all cases the ban would only apply to fiscal year 2015.


“The federal government should not be spending taxpayers’ money on federal contracts for companies that have renounced their American citizenship in favor of an island tax haven,” DeLauro said. “We should not be rewarding bad behavior and gifting these firms with lucrative federal contracts. Nearly two-thirds of the companies who have established subsidiaries in tax havens have registered at least one in Bermuda or the Cayman Islands. If a firm is going to abuse tax loopholes by pretending to be from these two island nations, Congress should make sure we are doing business with companies that are paying their fair share instead.”


“There is a crisis at our border and I don’t mean children fleeing poverty and violence.  It’s American corporations running for the border to dodge their tax bill,” said Doggett.  “Corporations that renounce their citizenship to avoid paying taxes shouldn’t come with hand outstretched to ask taxpaying American firms to pay for their government contracts.”