Deficit Resource Roundup:
With our soaring national debt, getting our fiscal house in order is essential. I have created a comprehensive Deficit Resource Roundup, where you will find a collection of resources about the crisis facing our Nation. It is very important to me to hear your views on this issue. After you have explored this page, I invite you to share your thoughts and suggestions on how we might best address this problem.
Combating Tax Loopholes that Ship U.S. Jobs and Tax Dollars Offshore:
I have been a strong advocate for closing tax loopholes that allow large corporations to avoid paying their fair share. In particular, the use of international tax games by multinational corporations is widespread and drains untold billions out of the Treasury. I recently introduced my latest legislation designed to combat these abuses. The International Tax Competitiveness Act would stop companies from avoiding taxes on intellectual property developed in the U.S. and then transferred offshore. The bill would also prevent corporations that are run from the U.S. from avoiding U.S. taxes simply by filing a piece of paper in a tax haven and claiming to be foreign. An egregious example of a corporation that has dodged its U.S. tax liability by moving offshore is Transocean, the owner of the rig that exploded in the BP oil spill. Click here to read an article about Transocean's move first to the Cayman Islands then to Switzerland.
Targeting Hidden Spending Through the Tax Code:
Like a traditional, direct expenditure, a tax expenditure removes money from the U.S. Treasury, but it does so indirectly by creating an exception to regular tax laws such as through a preference, credit, or deduction. Some groups that cannot justify Congress spending money directly are using the Tax Code to get these special benefits so they don't have to pay taxes on the same basis as the rest of us. I have been trying to put a stop to the unchecked growth of these tax breaks and to slow our growing National debt. I am concerned about spending--whether through the Appropriations Act or the Tax Code. We need to examine closely both types of expenditures to ensure that each is effective, efficient and truly necessary. As a small step in this regard, I authored a provision in recent legislation extending expiring tax provisions that requires an evaluation of these provisions before we are called on to extend them again next year. I have also been urging the Administration to take action to create a process to systematically evaluate tax expenditures in the same way it does direct expenditures.