NewsNEAL FOR CONGRESS
FOR IMMEDIATE RELEASE - August 28, 2012
CONTACT: Matt Fenlon 413-624-6325
Highlights Legislation to Close Overseas Tax Loopholes
(SPRINGFIELD) As outsourcing becomes a topic of debate during the Presidential campaign, Congressman Richard E. Neal released a TV ad highlighting his work stopping American companies from hiding profits overseas.
“There are American companies that have chosen to move to countries like Bermuda and the Cayman Islands for the purpose of sophisticated tax avoidance,” said Neal. “I filed legislation to address that issue and we won.”
Neal recently reintroduced legislation –H.R. 3157- that closes a tax loophole allowing foreign insurance companies to shift their U.S. income into tax havens, avoiding U.S. taxes and gaining a competitive advantage over American insurance companies. Over the past two decades, foreign insurance companies have used “affiliate reinsurance” to strip much of their U.S. profits to low-tax and no-tax countries like Bermuda and Switzerland to avoid U.S. taxes that our domestic-based companies must pay. Many of these foreign insurance companies used to be American insurance companies, but they have inverted overseas to take advantage of this loophole. Neal’s bill would raise about $11 billion over 10 years and close this egregious loophole.