Rep. Levin unveils bill clamping down on U.S. multinationals

House Ways and Means Chairman Sandy Levin (D-Mich.) on Wednesday introduced legislation aimed at closing several tax breaks used by U.S. multinational companies. 

The bill, Investing in American Jobs and Closing Tax Loopholes Act of 2010, is part of the Democrats’ “Make it in America” agenda that seeks to stimulate growth in the nation’s manufacturing sector. The legislation will be the subject of a House Rules Committee meeting this evening and is expected to be voted on tomorrow. 

The proposal extends the Build America Bonds, new market tax credits and Recovery Zone Bonds that create incentives for improvements in infrastructure. It also extends emergency assistance to programs like Temporary Assistance for Needy Families, slated to expire Sept. 30.  

The bill is paid for in large part by closing $11.6 billion in foreign tax credits.

The original intent of the credits was to ensure against double taxation. But Levin in the past has stated that these credits have been abused by companies to reduce their tax burden by using them to offset unrelated foreign income.