Bill

Bill > HR5108


US HR5108

No Tax Breaks for Outsourcing Act


summary

Introduced
02/27/2018
In Committee
02/27/2018
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

No Tax Breaks for Outsourcing Act This bill amends the Internal Revenue Code, with respect to the taxation of the foreign-source income of domestic corporations, to: eliminate an exemption for certain returns from tangible investments made overseas, eliminate deductions for a domestic corporation's foreign-derived intangible income and global intangible low-taxed income, repeal a provision that excludes foreign oil and gas extraction income from the tested income of a controlled foreign corporation, limit the tax deduction for the interest expenses of a U.S. corporation that is a member of a financial reporting group (i.e., a group that prepares consolidated financial statements according to generally accepted accounting principles or international financial reporting standards), modify the rules for the taxation of inverted corporations (U.S. corporations that acquire foreign companies to reincorporate in a foreign jurisdiction with income tax rates lower than the United States), and treat certain foreign corporations managed and controlled primarily in the United States as domestic corporations for tax purposes.

AI Summary

This bill, the No Tax Breaks for Outsourcing Act, makes several amendments to the Internal Revenue Code to eliminate tax benefits for corporations that move jobs and operations overseas. The key provisions include: - Repealing an exemption for returns from tangible investments made overseas and eliminating deductions for a corporation's foreign-derived intangible income and global intangible low-taxed income. This effectively ends the "tax-free deemed return on investments" provision. - Limiting the tax deduction for interest expenses of U.S. corporations that are part of an international financial reporting group. This is intended to discourage corporations from using debt to shift profits to lower-tax jurisdictions. - Modifying the rules for taxing "inverted" corporations - U.S. corporations that acquire foreign companies to reincorporate in a foreign jurisdiction with lower tax rates. - Treating certain foreign corporations that are primarily managed and controlled in the U.S. as domestic corporations for tax purposes, closing a loophole that allowed them to avoid U.S. taxes. The overall goal of the bill is to eliminate tax incentives that encourage U.S. companies to outsource jobs and shift profits overseas, while closing loopholes that have allowed some foreign companies to avoid paying U.S. taxes.

Committee Categories

Budget and Finance

Sponsors (78)

Lloyd Doggett (D)* Nanette Barragán (D),  Karen Bass (D),  Earl Blumenauer (D),  Brendan Boyle (D),  Robert Brady (D),  Michael Capuano (D),  Matt Cartwright (D),  Judy Chu (D),  David Cicilline (D),  Yvette Clarke (D),  Emanuel Cleaver (D),  Steve Cohen (D),  Joe Courtney (D),  Elijah Cummings (D),  Danny Davis (D),  Peter DeFazio (D),  Rosa DeLauro (D),  Mark DeSaulnier (D),  Debbie Dingell (D),  Keith Ellison (D),  Anna Eshoo (D),  Adriano Espaillat (D),  Dwight Evans (D),  Marcia Fudge (D),  John Garamendi (D),  Raúl Grijalva (D),  Luis Gutiérrez (D),  Alcee Hastings (D),  Brian Higgins (D),  Jared Huffman (D),  Sheila Jackson-Lee (D),  Pramila Jayapal (D),  Hakeem Jeffries (D),  Eddie Johnson (D),  Hank Johnson (D),  Marcy Kaptur (D),  Robin Kelly (D),  Ro Khanna (D),  Conor Lamb (D),  James Langevin (D),  Barbara Lee (D),  John Lewis (D),  Alan Lowenthal (D),  Stephen Lynch (D),  Carolyn Maloney (D),  Betty McCollum (D),  Jim McGovern (D),  Gwen Moore (D),  Jerry Nadler (D),  Grace Napolitano (D),  Richard Nolan (D),  Donald Norcross (D),  Eleanor Holmes Norton (D),  Frank Pallone (D),  Bill Pascrell (D),  Collin Peterson (D),  Mark Pocan (D),  Jamie Raskin (D),  Lucille Roybal-Allard (D),  Bobby Rush (D),  Tim Ryan (D),  John Sarbanes (D),  Jan Schakowsky (D),  Bobby Scott (D),  José Serrano (D),  Albio Sires (D),  Louise Slaughter (D),  Darren Soto (D),  Tom Suozzi (D),  Mark Takano (D),  Dina Titus (D),  Paul Tonko (D),  Timothy Walz (D),  Maxine Waters (D),  Bonnie Watson Coleman (D),  Peter Welch (D),  John Yarmuth (D), 

Last Action

Referred to the House Committee on Ways and Means. (on 02/27/2018)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...