Bill > SCR87

This concurrent resolution urges the United States Congress and President to prohibit awarding federal contracts to "inverted domestic corporations," which are companies originally incorporated in the United States that have legally relocated their corporate headquarters to a foreign country, typically to take advantage of lower tax rates. The resolution highlights that these corporate inversions allow companies to avoid paying higher U.S. taxes by establishing legal residency in countries with lower corporate tax rates, such as Ireland, which has a 12.5% rate compared to the combined U.S. state and local tax rate of around 26%. The resolution notes that while the rate of inversions has slowed due to Treasury regulations, they still represent a significant economic cost to the United States. Furthermore, the resolution points out that pending congressional legislation would prevent executive agencies, including the Department of Defense, from awarding contracts to inverted domestic corporations unless a national security waiver is granted. By passing this resolution, the New Jersey Legislature is expressing its concern about corporate tax avoidance strategies and calling for federal action to discourage such practices through contract restrictions.

Government Affairs

https://www.njleg.state.nj.us/bill-search/2024/SCR87