Daily Tax Update - April 16, 2013: Rep. Doggett Reintroduces "Stop Tax Haven Abuse Act"

REP. DOGGETT REINTRODUCES “STOP TAX HAVEN ABUSE ACT”: House Ways and Means member Rep. Lloyd Doggett (D-TX) has reintroduced legislation aimed at closing “several different loopholes by deterring the use of tax havens for tax evasion and strengthening the enforcement of our tax laws.”  Doggett introduced the bill (The Stop Tax Haven Abuse Act) in the last Congress also.  According to Doggett, “One provision would prevent U.S.-run corporations from avoiding U.S. taxes by filing a piece of paper abroad and pretending to be foreign.  The bill would also require SEC-registered corporations to report annually on the number of employees, sales, financing, tax obligations, and tax payments on a country-by-country basis, shedding more light on the extent of use of tax havens.  This bill also provides for additional penalties for failing to disclose offshore holdings and for promoting abusive tax shelters.”

Doggett also introduced The Fairness in International Taxation Act, which “would end the current practice of treaty shopping to avoid U.S. taxes.  The United States has tax treaties with a number of trading partners that reduce the amount of taxes that a U.S. based entity owes on interest and royalties paid to a foreign parent.  Since many of these foreign parent companies are set up in tax havens, these companies now bypass U.S. tax by routing the payment through a tax-treaty country that then just transfers the funds to the tax-haven parent.  This bill would end that legal fiction and say that you only get the tax-treaty discount if the parent company is actually located in a tax-treaty country.” 

The third bill introduced by Doggett yesterday was The International Tax Competitiveness Act, which “addresses a large and growing area of tax abuse: the practice of developing a trademark, patent, or copyright in the U.S. and then transferring that intellectual property abroad to avoid taxes on the massive amounts of income generated by it.  This bill would treat income from the U.S. intellectual property as U.S. income and tax it accordingly.”    

Doggett said, “Over a three-year period, 30 Fortune 500 companies spent more on lobbying Congress than they paid in taxes to the Treasury. Some of our largest corporations have enjoyed effective rates that are [in the] single digits.  Corporate America did not contribute a nickel to the fiscal cliff deal that meant higher taxes for many Americans at the beginning of this year.  Indeed, that deal gave some corporations major tax cuts.  I believe that it is reasonable to ask corporate America to contribute a little more toward closing the budget gap and to the cost of our national security.”

TAX BILLS INTRODUCED APRIL 15:

1. [113rd] H.R.1552 : To amend the Internal Revenue Code of 1986 to allow the transfer of required minimum distributions from a retirement plan to a health savings account.
Sponsor: Rep Huizenga, Bill [MI-2] (introduced 4/15/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 4/15/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] H.R.1555 : To amend the Internal Revenue Code of 1986 to reduce international tax avoidance and restore a level playing field for American businesses.
Sponsor: Rep Doggett, Lloyd [TX-35] (introduced 4/15/2013)      Cosponsors(23) 
Committees: House Ways and Means 
Latest Major Action: 4/15/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


3. [113rd] H.R.1556 : To amend the Internal Revenue Code of 1986 to prevent corporations from exploiting tax treaties to evade taxation of United States income.
Sponsor: Rep Doggett, Lloyd [TX-35] (introduced 4/15/2013)      Cosponsors(11) 
Committees: House Ways and Means 
Latest Major Action: 4/15/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


4. [113rd] H.R.1560 : To amend the Internal Revenue Code of 1986 to authorize the Internal Revenue Service to permit truncated social security numbers on wage reporting provided to employees.
Sponsor: Rep Garcia, Joe [FL-26] (introduced 4/15/2013)      Cosponsors (2) 
Committees: House Ways and Means 
Latest Major Action: 4/15/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


5. [113rd] H.R.1568 : To amend the Internal Revenue Code of 1986 to provide for adjustments in the individual income tax rates to reflect regional differences in the cost-of-living.
Sponsor: Rep Nadler, Jerrold [NY-10] (introduced 4/15/2013)      Cosponsors(2) 
Committees: House Ways and Means 
Latest Major Action: 4/15/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


6. [113rd] H.R.1569 : To amend the Internal Revenue Code of 1986 to terminate certain energy tax subsidies and lower the corporate income tax rate.
Sponsor: Rep Pompeo, Mike [KS-4] (introduced 4/15/2013)      Cosponsors (9)
Committees: House Ways and Means 
Latest Major Action: 4/15/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


7. [113rd] H.R.1571 : To amend the Internal Revenue Code of 1986 to provide for taxpayers making donations with their returns of income tax to the Federal Government to pay down the public debt.
Sponsor: Rep Scalise, Steve [LA-1] (introduced 4/15/2013)      Cosponsors(19) 
Committees: House Ways and Means 
Latest Major Action: 4/15/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


8. [113rd] S.720 : A bill to amend the Internal Revenue Code of 1986 to provide for taxpayers making donations with their returns of income tax to the Federal Government to pay down the public debt.
Sponsor: Sen Thune, John [SD] (introduced 4/15/2013)      Cosponsors (7) 
Committees: Senate Finance 
Latest Major Action: 4/15/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


9. [113rd] S.728 : A bill to amend the Internal Revenue Code of 1986 to extend the exclusion from gross income for employer-provided health coverage for employees' spouses and dependent children to coverage provided to other eligible designated beneficiaries of employees.
Sponsor: Sen Schumer, Charles E. [NY] (introduced 4/15/2013)      Cosponsors (2) 
Committees: Senate Finance 
Latest Major Action: 4/15/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.