Hatch: Outsourcing tax loophole is ‘total B-S’

Sen. Orrin HatchOrrin HatchBacteria found ahead of Olympics underscores need for congressional action for new antibiotics Burr pledges to retire after one more Senate term Leaders appoint allies, adversaries to Puerto Rico growth task force MORE (R-Utah) said Democrats' claims that there is a tax loophole for U.S. businesses that ship jobs overseas are false.

“It’s total B-S,” Hatch said on the Senate floor Wednesday. “It’s amazing to me what people will do for political advantage — it’s shameless.”

Earlier Wednesday, the Senate voted 93-7 to procedurally advance S. 2569, the Bring Jobs Home Act, which would end tax breaks for companies that send jobs overseas.

Hatch, ranking member of the Senate Finance Committee, said the supporters of the bill are making false claims because there is no “special treatment” for companies moving outside the United States.

Currently U.S. companies can deduct from their corporate taxes some expenses of moving facilities overseas, but Hatch said the same tax credit is also available for those companies moving from one state to another.

“No such loopholes exist,” Hatch said. “There is no special treatment.”

Hatch said he hopes there is an open amendment process while the Senate considers the bill but “I wouldn’t hold my breath.” He said if Democrats were serious about keeping companies in the United States, they’d vote to reduce corporate tax rates instead.

More in Overnight Finance

Overnight Finance: Senate punts on Zika funding | House panel clears final spending bill | Biz groups press Treasury on tax rules | Obama trade rep confident Pacific deal passes this year

Read more »