Today State Senator Donald W. Norcross (D-NJ-5), the Democratic candidate for the U.S. House of Representatives in New Jersey's First District, called on Congress to take immediate legislative action when it reconvenes in September to permanently close corporate tax "inversion' loopholes allowing big business to avoid paying their fair share in taxes at the expense of America's middle class. Norcross was furious after reading several stories and editorials in recent days in the New York Times that highlighted how some of America's largest companies were egregiously exploiting the tax code after the Senate Permanent Subcommittee on Investigations exposed complex transactions designed to dodge tens of billions of dollars in taxes.
"Inversions, which are at the heart of the issue, allow American companies to set up shop overseas, to reincorporate there, and avoid paying American taxes even if its leadership, shareholders, and operations are still based here in this country," said Senator Norcross, the only union business agent running for Congress in the country this year. "That's beyond wrong. Some of these corporations haven't paid a dime in federal taxes in years because of this tax avoidance loophole and it needs to stop."
Norcross added: "When people who teach school, wait on tables, feed nursing home patients, and wire up buildings pay more than their fair share of taxes, it is just plain wrong that huge corporations can just change their addresses and pay nothing or next to nothing. Yet the CEOs of these same companies expect our sons and daughters to defend their interests around the world, and our first responders here at home to protect their families and properties. Their free ride has gone on long enough."
Norcross said that Congress should pass a law to immediately close this loophole, and compel these corporations and banks who earn big fees on the deals to return to the U.S. Treasury what they've been avoiding in federal taxes retroactive to January 1, 2014.
"I support the concepts outlined in Senator Levin's 'Cut Unjustified Tax (CUT) Loopholes' legislation," said Norcross. "That bill would take concrete steps to close offshore tax havens, including eliminating sweetheart tax incentives for offshoring U.S. jobs, stopping American-managed companies from claiming foreign status, expanding authority at the Treasury to break up these tax-dodging arrangements, and establishing guidelines for companies to prove their legitimate offshore status, rather than simply relying on creative accounting."
The Joint Committee on Taxation in Congress and the President's Office of Management & Budget have estimated that implementing these common-sense reforms would yield at least $155 billion in deficit reduction over 10 years.
"$155 billion over 10 years has to be borrowed and paid back by taxpaying Americans if this loophole is not slammed shut," he added.
"I would like to see legislation modeled after Senator Levin's bill that permanently closes this loophole."
"This is not a Republican or Democratic issue -- it is an issue of economic patriotism. All of us who love our country have an obligation to pay our fair share to support it," said Norcross.