U.S. multinational corporations have been dodging billions of dollars in taxes by undertaking a corporate inversion. An inversion is when a larger U.S. company buys a smaller foreign company that is usually located in a tax haven. The U.S. company then becomes a subsidiary of the foreign company. This allows it to change its legal address to a foreign country with a low tax rate, even though the entire company continues to be operated from America.

The U.S. Treasury Department has proposed a rule that will deny a major tax break to companies that undertake an inversion. It’s known as the “earnings stripping” rule. This rule would stop foreign corporations that take over U.S. companies from being able to shift the U.S. corporate profits offshore by “loaning” them money. When such a loan occurs, the U.S. subsidiary gets a tax deduction for the interest it pays to the foreign parent on the loan it didn’t need. Then the U.S. profits go offshore to a low-tax country where corporations avoid paying what they owe to America.  

Tell the Treasury Department we need this critical rule to be made FINAL so that multinational corporations pay the taxes they owe!