DeLauro, Doggett React to Treasury Guidance on Inversions

WASHINGTON, DC—Congresswoman Rosa DeLauro (D-CT) and Congressman Lloyd Doggett (D-TX) reacted to the release of Treasury Guidance on Inversion Transactions today. DeLauro and Doggett, along with other Members of Congress, urged Treasury Secretary Jack Lew in September to publish an annual list of inverted companies and use executive authority to crack down on these tax avoidance schemes. Inversions occur when U.S. companies move their headquarters overseas, but only on paper, to avoid paying their fair share of U.S. taxes. Their prior letter to Secretary Lew can be read in its entirety here.

“The new guidance announced by Treasury will limit the benefit of and discourage some corporate inversions. Congress and the Administration need to do more to prevent companies from moving their mailboxes abroad to avoid paying taxes in the United States. Treasury should use their authority to prohibit earnings stripping,” said Rep. DeLauro. “These companies built their businesses on the back of our education system, our research and development incentives, our skilled workforce, and our infrastructure – all funded by honest, hardworking Americans who pay their taxes. We cannot continue to allow these corporations to pretend they are American while reaping the benefits this country has to offer, yet claim to be another nationality when the tax bill comes.”

“Treasury is belatedly issuing a modest clarification when much bolder action is required. The appalling Pfizer deal is a particularly bitter pill to swallow. If Pfizer wants to pay Irish taxes, how about they start charging Irish prices to Americans for their drugs.” Rep. Doggett said. “Treasury has yet to respond to a longstanding, specific proposal that the Administration categorize debt as equity for these inverted corporations, curbing the practice of earnings stripping. With a Republican Congress obstructing legislation, the Administration must utilize every power it has to end both price gouging and tax dodging. So far, it has failed to do so.”

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