Monday, June 10, 2013

Ways & Means to hold hearings on CFC's and Multinational Corporation' Offshore Tax Havens

For the MJR Report
By Miriam J. Ramirez
June 10, 2013
Congressman Camp announced a hearing on Tax Reform: Tax Havens, Base Erosion and Profit-Shifting. to be held in the Ways & Means Committee on Thursday, June13th. Puerto Rico, a US Territory serves as a tax haven for tax evasion. It has been coded as a foreign country (Through intense lobbying and influence by the same companies), to benefit CFC's and Multinational Corporations who use Puerto Rico to evade paying their share of taxes.

It is a legal scam to the IRS and to the Tax Paying, law abiding, citizens of the 50 States. It is a moral, and abusive action against the US citizens of Puerto Rico who as a result are discriminated against by the US Government. PuertoRicans remain in a colonial status so as to benefit their interests.

The hearing will focus on examining the diverse tax planning strategies that are being used by the multinational corporations to shift income out of the United States and into low-tax jurisdictions. The Committee will hold a hearing on U.S. and foreign multinational corporations’ use of tax havens (low- and no-tax jurisdictions) to avoid tax and shift profits outside the United States and erode the U.S. tax base

According to the Press Release, "the hearing also will consider when profit shifting truly is eroding the U.S. tax base and when companies are shifting profits amongst different foreign jurisdictions without affecting U.S. tax collections."

When announcing this hearing, Chairman Camp said, “The use of tax havens as part of corporate tax avoidance strategies narrows the U.S. tax base and requires other taxpayers to pay higher rates on both domestic and overseas income. There is widespread agreement amongst academics, economists and lawmakers that these practices are both unfair to taxpayers who aren’t able to engage in these strategies and harmful to the U.S. economy.

The Committee’s discussion draft on international tax reform included options to combat base erosion as part of a larger effort to broaden the tax base, lower tax rates and move towards a more modernized and competitive system of international taxation. As the Committee works to design tax reform policies that make our broken tax code simpler, fairer and more conducive to creating jobs and increasing wages, understanding the impact of these practices will result in more informed policy making.”