Sen. Donnelly Urges Congressional Action on Tax Code Abuse
August 25, 2014 — U.S. Senator Joe Donnelly today sent a letter to President Obama expressing concern with the increasing trend of American companies shifting their legal address from the United States to low-tax countries in order to avoid corporate tax liability here at home. The letter asks that in the absence of quick action by Congress, the President work with the Treasury Department to stop the ongoing abuse of the current tax code.
In the letter, Donnelly wrote, “Companies that utilize such inversions retain all the benefits of doing business in America, while avoiding the corporate tax liability of their American competitors. I regularly meet with American businesses that are committed to their local communities and to this country. Unfortunately, more than two dozen corporations in recent years have taken advantage of the current tax code to avoid taxes, thereby impeding the competitiveness of businesses that remain in the United States.”
Donnelly explained that he is committed to working in a bipartisan fashion to reach a long-term solution to this problem through comprehensive corporate tax reform, but that temporary, more immediate measures are necessary in order to stop more companies from taking up this practice while Congress works on a long-term fix.