DeLauro Announces Ban on New Contracts with Corporate Expatriates under Transportation-Treasury Approps Bill
DeLauro Announces Ban on New Contracts with Corporate Expatriates under Transportation-Treasury Approps Bill
WASHINGTON, D.C. - Companies that go offshore to pay fewer U.S. taxes will not be able to obtain new contracts under the Fiscal Year 2006 Transportation-Treasury Appropriations bill, Congresswoman Rosa L. DeLauro (Conn.-3) announced today. These companies, called corporate expatriates, 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. "They should not now come back to the federal trough to get new contracts. Congress sent a clear message to corporate expatriates: that there is a standard and if these companies are going to not pay taxes in this country, then they will no longer reap the benefit of government contracts in this country either."
During consideration of the bill in the U.S. House in June, DeLauro offered an amendment calling for this ban. Though the amendment failed, DeLauro worked with her colleague Senator Levin to have the amendment included by the Senate. The House has already passed the bill and the Senate is expected to do so later today.
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. "I am delighted Congress is working to close this loophole once and for all."
http://www.house.gov/delauro/press/2005/November/transportation_treasury_11_18_05.html