DeLauro, Doggett Ban on Federal Contracts with Corporate Tax Dodgers Extended To Energy-Water Funding Bill

WASHINGTON, DC—Representatives Rosa DeLauro (D-CT) and Lloyd Doggett (D-TX) today won approval of a ban on contracts by the Department of Energy or Army Corps of Engineers with corporations that were incorporated in the United States, but have been reincorporated in the tax havens of Bermuda or the Cayman Islands. The proposal was offered as an amendment to the Fiscal Year 2015 Energy and Water Appropriations bill. The final vote on the amendment was 221-200. The House of Representatives is expected to vote on the bill tonight.

Identical amendments were included with the Fiscal Year 2015 Transportation-Housing and Urban Development Appropriations bill, and Fiscal Year 2015 Department of Defense Appropriations bills. In all three cases the ban would only apply to fiscal year 2015.

“We should not spend taxpayer money on federal contracts that go to companies that have renounced their American citizenship in favor of an island tax haven,” DeLauro said. “These firms simply should not be allowed to pretend they are an American company when it comes time to get contracts, and then claim to be an offshore company when the tax bill arrives. These companies take advantage of our education system, our research and development incentives, our skilled workforce, and our infrastructure, all supported by U.S. taxpayers. We should support the firms that are staying at home and meeting their obligations.”

“Corporations that renounce their citizenship not only invert their business operations but pervert our laws,” said Doggett. “Those dodging their fair share of taxes should not be rewarded with taxpayer-funded government contracts.”