Rep. Lloyd Doggett
, D-Texas, says Congress should look at changing the corporate tax rate, so multinational corporations would not need to move their headquarters overseas to avoid paying a staggering 35 percent on earnings. Doggett also said Wednesday on MSNBC’s “Morning Joe” that unless tax loopholes are closed, more American jobs will move overseas.
Doggett was asked what needs to be done to keep U.S. companies in America. While acknowledging that when Democrats controlled Congress and the White House nothing was done, he said lawmakers should now try and find solutions to the nation’s cumbersome tax code.
“I think we ought to look at why that money is going abroad and why we have in our tax code incentives for them to invest abroad instead of investing in America,” Doggett said. “After all, if a company is paying 35 percent on opening a new plant here in the United States — and nothing initially on opening one abroad — they have an incentive to ship jobs overseas.
“I think we need to look at our tax code and reform it,” he continued. “I don’t think that a corporation here ought to be able to borrow money, deduct the interest in the United States, but never recognize the income initially of what it’s spending overseas. It’s one thing after another, where our tax code is encouraging the export of both jobs and revenues.”
Doggett was asked since the corporations have an obligation to shareholders, and U.S. tax rates are astronomical, why wouldn’t corporations move overseas, and isn’t the answer to lower the cost of doing business in America.
“Well as long as our members of Congress yield to the powerful lobbying interests here and allow them to circumvent the tax laws that apply to individuals and small businesses here, yes I would assume they would use the loopholes they helped write,” Doggett said.
“I’m willing to look at the overall corporate tax rate, but I think we begin by looking at where are those loopholes and how can they be fixed.”
© 2017 Newsmax. All rights reserved.