DeLauro Statement on Department of Treasury’s New Measures to Curb Corporate Inversions

NEW HAVEN, CT—Congresswoman Rosa DeLauro (D-CT) released the following statement today in response to the Department of Treasury’s announced actions to curb corporate inversions:

“Today’s announcement is a good first step toward reigning in corporate inversions. Some of the loopholes and tax avoidance schemes employed by these corporate deserters will now be closed. Congress must now act to stop companies from inverting and dodging their tax obligations at the expense of companies who pay their fair share.

“The federal government must also stop subsidizing this bad behavior, by continuing to reward inverted companies with lucrative federal contracts. These companies take advantage of all the benefits our country offers—our education system, our research and development incentives, our skilled workforce, and our infrastructure, yet when the tax bill the tax bill comes due, they hide overseas. These corporate deserters should not be allowed to benefit from federal contracts.”

DeLauro is author of the No Federal Contracts for Corporate Deserters Act. That legislation would bar contracts from going to businesses that reincorporate overseas, are majority-owned by shareholders of the old U.S. corporation and do not have substantial business activities in the foreign country in which they are incorporating. It would also strengthen current law by curbing most subcontracts with inverted corporations.



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