DeLauro, Doggett Ban On Government Contracts With Corporate Tax Dodgers Included In Transportation-Housing And Urban Development Bill

Press Release

Representatives Rosa DeLauro (D-CT) and Lloyd Doggett (D-TX) today successfully secured a ban on contracts with the Departments of Transportation, and Housing and Urban Development from going to corporations that were incorporated in the United States, but have been reincorporated in the tax havens of Bermuda or the Cayman Islands. They offered an amendment instituting this ban to the Fiscal Year 2015 Transportation-Housing and Urban Development Appropriations bill and it won approval by voice vote. The ban would only apply to fiscal year 2015.

"The profits Fortune 500 companies claim were earned in Bermuda and the Cayman Islands in 2010 totaled over 1,600 percent of these countries' entire yearly economic output," DeLauro said. "It defies logic to believe these companies conducted such a large amount of business there. They take advantage of our education system, our research and development incentives, our skilled workforce, and our infrastructure, all supported by U.S. taxpayers, to build their businesses, and then turn around and abuse tax havens. These companies should not be allowed to pretend they are an American company when it is time to get federal contracts then claim to be an offshore company when the tax bill comes."

"I'm pleased we found bipartisan agreement not to spend taxpayer money on federal contracts to companies that have renounced their American citizenship in favor of an island tax haven," said Doggett. "Some companies send their tax dollars to support our infrastructure and military, while others just send a post card that says "You can find me in Bermuda or the Caymans. Glad you are not here.'"

According to a study issued last week the 70 percent of Fortune 500 companies that used tax havens last year stashed nearly $2 trillion offshore for tax purposes. Almost two-thirds of that was hidden away by just 30 companies.

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