House takes another stab at Treaty Shopping in 9/11 bill

The House this week is once again expected to prevent "treaty shopping" when it votes on legislation providing aid to people whose health was seriously impacted at Ground Zero during the 9/11 clean up. 

Treaty shopping can be used to avoid paying U.S. taxes. It occurs when multinational companies located in a country without a U.S. tax treaty receive U.S. income through a subsidiary in another country that has a treaty with the U.S. to avoid paying U.S. taxes. 

To prevent the avoidance, subsidiaries serving as a conduit to firms without a treaty would be subject to a withholding tax. 

The bill, the James Zadroga 9/11 Health and Compensation Act of 2010, seeks to prevent treaty shopping from happening.  

The provision raises approximately $7.4 billion over ten years and is aimed at treaty shopping used by multinational companies incorporated in tax haven countries. 

The House in July voted on the 9/11 bill and treaty shopping under suspension of the rules, but it failed to garner the two-thirds vote needed to pass the chamber.

This time the bill will be under regular order, which means it needs a simple majority to pass. If July's vote is any indication to the level of support it will receive, it should pass. July's vote was 255-159 with some Republicans supporting the measure.