DeLauro Praises Obama Administration’s Efforts to Reform Tax Code

Washington, D.C. – Congresswoman Rosa L. DeLauro (Conn. -3) issued the following statement on the Obama's Administration's announcement of efforts to reform the tax code to curb the abuse of offshore tax shelters and eliminate tax incentives for shifting jobs overseas. Earlier this year, DeLauro, with Congressman Lloyd Doggett, re-introduced the Stop Tax Haven Abuses Act (H.R. 1265) to close the loopholes that allow offshore tax shelters and cost taxpayers nearly $100 billion a year.

"That our tax code contains advantages for creating jobs overseas and opportunities to avoid paying taxes, defies common sense. Tax havens allow individuals and businesses to avoid paying their taxes, which results in an extra burden for those who do pay their share. We need to close the loopholes so that offshore tax havens and tax shelters will no longer be an option to hide income and assets.

"I welcome President Obama's efforts to restore balance to our tax code and look forward to working with my colleagues to take steps to fix our broken system."

In February, DeLauro wrote to Office of Management and Budget Director Peter Orszag urging the Obama Administration to include measures from the Stop Tax Haven Abuse Act in its upcoming fiscal year 2010 budget proposal to prevent corporations from hiding their incomes offshore. The letter cites a Government Accountability Office report, which found that 83 of the 100 largest publicly traded U.S. corporations, including several receiving taxpayer money through the Treasury's financial rescue program, and 63 of the 100 largest U.S. federal contractors reported having subsidiaries in tax havens or financial privacy jurisdictions. Also on the letter were U.S. Senator Carl Levin (D-MI) and Congressmen Lloyd Doggett (D-TX) and Sander Levin (D-MI).