Daily Tax Update - September 19, 2013: Sen. Levin Introduces "Stop Tax Haven Abuse Act"

Sen. Levin Introduces "Stop Tax Haven Abuse Act":  Sen. Carl Levin (D-MI) and Sens. Sheldon Whitehouse (D-RI), Mark Begich (D-AK), and Jeanne Shaheen (D-NH) introduced legislation designed to close offshore corporate tax loopholes.  Levin has introduced similar legislation in previous Congresses.  Levin said that the bill would raise $220 billion in additional revenue over 10 years.

Levin said, “These corporate tax loopholes are unfair to domestic companies, small business and the families who must carry the extra burden that results when large multinational corporations use complex gimmicks to avoid taxes.  We should end these loopholes regardless of our budget situation, because they are blatantly unfair.  But surely now, with sequestration continuing to damage military readiness, education, life-saving medical research and more, we should end these offshore tax avoidance schemes and use the revenue as part of a balanced plan to replace sequestration.”

The bill would:

  • “Crack down on the use of intellectual property transfers as tax-avoidance tools by taxing excess income earned from transferring intellectual property to offshore subsidiaries;
  • Give the Treasury Department important new weapons to fight against foreign governments and financial institutions that aid tax avoidance, including the ability to prohibit U.S. banks from doing business with foreign banks in jurisdictions that impede U.S. tax enforcement;
  • Require SEC-registered corporations to disclose employment, revenues and tax payments on a country-by-country basis;
  • Eliminate the tax incentive for companies to move jobs and operations offshore by limiting their ability to claim immediate tax deductions for expenses related to those offshore operations while deferring the U.S. tax on the income those operations generate;
  • Repeal what are known as the “check-the-box” and “CFC look-through” rules, which allow multinationals to avoid U.S. taxes they would otherwise owe by making offshore subsidiaries disappear for tax purposes, turning taxable passive income into tax-deferred active income;
  • Prevent multinationals from using short-term loans from their offshore subsidiaries to essentially repatriate income while avoiding taxes that should apply to repatriated money.”

A summary of the bill can be accessed via: Summary of the Levin-Whitehouse-Begich-Shaheen Stop Tax Haven Abuse Act

Tax Bills Introduced September 18:

1. [113rd] H.R.3127 : To amend the Internal Revenue Code of 1986 to allow a credit to small employers for certain newly hired employees, and for other purposes.
Sponsor: Rep Maffei, Daniel B. [NY-24] (introduced 9/18/2013)      Cosponsors (None) 
Committees: House Ways and Means; House Small Business 
Latest Major Action: 9/18/2013 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.


2. [113rd] H.R.3129 : To amend the Internal Revenue Code of 1986 to make permanent the full exclusion applicable to qualified small business stock.
Sponsor: Rep Moore, Gwen [WI-4] (introduced 9/18/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 9/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


3. [113rd] S.1515 : A bill to amend the Internal Revenue Code of 1986 to improve and expand education savings accounts.
Sponsor: Sen Kirk, Mark Steven [IL] (introduced 9/18/2013)      Cosponsors (None) 
Committees: Senate Finance 
Latest Major Action: 9/18/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


4. [113rd] S.1523 : A bill to amend the Internal Revenue Code to make permanent qualified school construction bonds and qualified zone academy bonds, to treat qualified zone academy bonds as specified tax credit bonds, and to modify the private business contribution requirement for qualified zone academy bonds.
Sponsor: Sen Rockefeller, John D., IV [WV] (introduced 9/18/2013)      Cosponsors (3) 
Committees: Senate Finance 
Latest Major Action: 9/18/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


5. [113rd] S.1524 : A bill to amend the Internal Revenue Code of 1986 to exclude major professional sports leagues from qualifying as tax-exempt organizations.
Sponsor: Sen Coburn, Tom [OK] (introduced 9/18/2013)      Cosponsors (None) 
Committees: Senate Finance 
Latest Major Action: 9/18/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.