NYC Gazette

Washington D.C. - Congressman Dan Goldman (NY-10) this month cosponsored the ‘No Tax Breaks for Outsourcing Act’ to end Trump Era tax breaks that incentivize corporations to ship jobs overseas, harming domestic small businesses and American workers. This legislation would ensure that multinational corporations pay the same tax rates on their profits earned abroad as they do in the United States. In addition, the ‘No Tax Breaks for Outsourcing Act’ would bring the United States in compliance with the Global Minimum Tax deal and guarantee that tax revenue goes to the U.S. Treasury instead of foreign coffers.

“We must support our small business and American workers by ensuring that their jobs and profits are not shipped overseas by large corporations incentivized by tax breaks,” Congressman Dan Goldman said. “It is time for multinational corporations to once again pay their fair-share of taxes here at home and prioritize American labor in American jobs.”

With the passing of the Trump tax incentives, studies have found that companies that benefited most from the tax break on offshore profits have increased foreign rather than domestic investment. Others estimate the U.S. loses over $90 billion in revenue annually from offshore tax dodging.

The No Tax Breaks for Outsourcing Act would establish a minimum tax rate on multinational corporations' overseas profits that matches the domestic corporate tax rates and applies to a comparable base. This move aligns with the Global Minimum Tax Agreement in 2021, which Secretary Yellen helped 130 countries adopt through the OECD, and our allies in the European Union, United Kingdom, and Korea have already started implementing. All American companies operating abroad will still have to pay the new minimum tax, even if the United States doesn’t join. Without U.S. enrollment, the money will go to other countries instead of staying in the U.S. 

Original source can be found here.