U.S. Sen. Jack Reed, D-R.I., has joined with fellow Democratic senators Elizabeth Warren of Massachusetts and Dick Durbin of Illinois in urging President Obama to use an executive order to reduce or get rid of tax breaks for companies that move their headquarters overseas to avoid paying U.S. taxes.
In letter to the president the three Democratic senators stated that while Congress considers a legislative solution there is a need for swift action by the president.
``Although we will continue to work toward a legislative solution to this problem, we urge you to use your authority to reduce or eliminate tax breaks associated with inversions,’’ the senators wrote. ``Inverted corporations take advantage of all the things American tax dollars provide – from tax credits for research and development, investments in transportation infrastructure, the strong patent and copyright protections, to profiting from taxpayer-supported programs like Medicare and the Veterans Health Administration. Yet these companies claim to be foreign corporations when it’s time to pay their tax bill – denying the United States billions in tax revenue and thereby increasing the tax burden on other U.S. taxpayers.’’
``U.S. businesses need to met their obligations just like everyone else. Corporate tax loopholes like this increase the dent and force mom and pop businesses and the middle-class to subsidize huge corporate operations at some of the most profitable companies out there. We most restore fairness to the tax code.’’