Dems urge more action on inversions

Democratic lawmakers urged the Obama administration to take a more aggressive stance toward the offshore tax deals known as inversions. 

Seven congressional Democrats in all called on Treasury Secretary Jack LewJacob (Jack) Joseph LewOvernight Finance: US reaches deal with ZTE | Lawmakers look to block it | Trump blasts Macron, Trudeau ahead of G-7 | Mexico files WTO complaint Obama-era Treasury secretary: Tax law will make bipartisan deficit-reduction talks harder GOP Senate report says Obama officials gave Iran access to US financial system MORE to take executive action against a technique known as earnings stripping that makes the offshore deals more attractive. 


They also suggested that the administration essentially shame companies by publicly listing those that have reincorporated abroad to slash their tax bills, and to close loopholes that still allow inverted companies to get federal contracts.

"While we recognize that Congress can, and should, do more to strengthen our laws, we encourage you to take these executive actions to curb the manipulation of our laws and regulations and prevent the further erosion of our tax base," the lawmakers wrote.

Reps. Rosa DeLauro (Conn.), Lloyd Doggett (Texas) and Sandy Levin (Mich.) signed the letter, as did Sens. Dick DurbinRichard (Dick) Joseph DurbinSanders: 'Not crazy' about nixing the Senate filibuster Democrats brush off GOP 'trolling' over Green New Deal Trump praises law enforcement response to shooting at Illinois business MORE (Ill.), Jack ReedJohn (Jack) Francis ReedPapering over climate change impacts is indefensible Why Democrats are pushing for a new nuclear policy GOP chairman: US military may have to intervene in Venezuela if Russia does MORE (R.I.), Elizabeth WarrenElizabeth Ann WarrenSanders campaign reports raising M in less than a day The Memo: Bernie Sanders’s WH launch sharpens ‘socialist’ question Gillibrand uses Trump Jr. tweet to fundraise MORE (Mass.) and Sheldon WhitehouseSheldon WhitehouseDemocrats brush off GOP 'trolling' over Green New Deal GOP Green New Deal stunt is a great deal for Democrats Pence met with silence after mentioning Trump in Munich speech MORE (R.I.).

They specifically mentioned three companies – Terex, CF Industries Holdings and Coca Cola Enterprises – that recently inverted as proof that Treasury needed to take further action.

Lew announced executive actions almost a year ago to make the offshore deals less attractive, and said the department would consider further action. 

Lawmakers have long urged Treasury to take a look at earnings stripping, in which a foreign company can get tax breaks for heaping debt on American subsidiaries. Under U.S. law, companies can deduct the interest paid on debt.