DeLauro Moves to Ban New Contracts with Corporate Expatriates Under Transportation-Treasury Appropriations
DeLauro Moves to Ban New Contracts with Corporate Expatriates Under Transportation-Treasury Appropriations
During House floor consideration of the Fiscal Year 2006 Transportation-Treasury Appropriations bill today, Congresswoman Rosa L. DeLauro (Conn.-3) offered an amendment to ban the departments and agencies funded under the bill from contracting with corporate expatriate companies. Corporate Expatriates are companies that have incorporated on paper overseas to avoid paying their taxes in America.
"These companies have made a clear choice to leave this country, and not pay their taxes," said DeLauro. "Now it's up to Congress to make a choice. We should set the standard, we should set the tone and tell these companies that if they are going to not pay taxes in this country, then, they will no longer reap the benefit of government contracts in this country either."
The amendment would not affect existing contracts, only new contracts awarded by the agencies funded under this bill in fiscal year 2006. In 2002, these companies received $1.4 billion in government contracts.
DeLauro pointed to several corporate expatriates that hold contracts with agencies funded under past Transportation-Treasury appropriations:
Foster-Wheeler Inc. - a total of $1.3 million with the General Services Administration (GSA) for different environmental services and work on buildings.
Cooper Industries - a total of $180,000 from the GSA for contracts to buy tools.
Accenture - a total of $1.7 billion in three separate contracts with the Internal Revenue Service, two awarded in FY 2002 and one awarded in FY 2003, for computer and office machine repair and maintenance, telecommunications services, and computer system design services.
Overall, corporate expatriates cost the United States $5 billion in tax revenue. Accenture, a company that reported its American earnings increased from $247.3 million in 2002 to $503 million in 2004, saw its U.S. tax liability decrease from $241.27 million in 2002 to $135.5 million.
"Their revenues are going up but their tax liability is going down - something's not right," said DeLauro. "It's time Congress closed this loophole once and for all."
DeLauro offered the amendment jointly with U.S. Representatives Marion Berry (AR-01), Richard Neal (MA-02), Lloyd Doggett (TX-10), Louise Slaughter (NY-28.)
http://www.house.gov/delauro/press/2005/June/corporate_expats_06_30_05.html