By Bernie Becker - 08/13/14 07:55 PM EDT
A group of congressional Democrats is urging President Obama to take executive action to keep companies from shifting their legal address offshore.
“Every day that we fail to act will result in more harm to the U.S. corporate base,” the Democrats wrote. “While we recognize that Congress can, and should, eliminate the loophole in current law, we also believe that we cannot afford to wait for tax reform to stop these companies from renouncing their citizenship.”
Reps. Rosa DeLauro (Conn.), Lloyd Doggett (Texas) and Sandy Levin (Mich.) signed the letter, as did Senate Majority Whip Dick DurbinDick DurbinRetailers have jumped the shark Dems gain upper hand on budget McConnell: Senate could drop flood money from spending bill MORE (Ill.) and Sens. Carl LevinCarl LevinThe Fed and a return to banking simplicity What Our presidential candidates can learn from Elmo Zumwalt Will there be a 50-50 Senate next year? MORE (Mich.) and Jack ReedJack ReedDemocrats press Wells Fargo CEO for more answers on scandal Senators already eyeing changes to 9/11 bill after veto override Overnight Finance: McConnell offers 'clean' funding bill | Dems pan proposal | Flint aid, internet measure not included | More heat for Wells Fargo | New concerns on investor visas MORE (R.I.).
The influx of companies reincorporating abroad, known as inversions, has become a major political issue this midterm election year, with Obama hammering corporations that leave as “deserters.”
Former Treasury officials have suggested that Obama has administrative methods to make inversions less attractive to corporations. But the Democratic letter offered no suggestions on what tools the president might have to limit those companies from getting federal contracts.