WASHINGTON, DC - Ways and Means Committee Ranking Member Sander Levin (D-MI) issued the following statement after the U.S. Treasury Department and the Internal Revenue Service (IRS) issued a notice that takes additional steps to curb corporate tax inversions:
“Treasury’s actions today are a step forward in making inversions both less beneficial and more difficult for American companies to undertake. One of the rules, for example, would reduce the pool of eligible foreign companies that can be acquired to facilitate inversions. Corporate tax inversions are costing the U.S. tens of billions of dollars in lost tax revenue and putting an increasing burden on American taxpayers, who cannot just move their addresses overseas to avoid taxes. Yet, as Secretary Lew noted in his letter yesterday, ‘only legislation can decisively stop inversions.’ The rumors that Pfizer may announce its plans to invert as soon as next week, making it potentially the largest inversion ever, highlights the urgent need for Congress to act, in addition to steps taken by Treasury."
In January, Ways and Means Committee Ranking Member Sander Levin and Committee member Lloyd Doggett (D-TX) introduced the Stop Corporate Inversions Act of 2015, which broadly follows the proposal laid out by the President in his FY2015 budget. Assistant Democratic Leader Dick Durbin (D-IL) and Senator Jack Reed (D-RI) introduced companion legislation in the Senate. The House bill would apply to inversions completed after May 8, 2014.
