MONTPELIER, VT. (AP) — U.S. Sen. Bernie Sanders of Vermont is pushing legislation to stop corporations from sheltering income in the Cayman Islands and other tax havens. The legislation also would end tax breaks for companies that ship jobs and factories overseas.
Sanders says studies by the Joint Committee on Taxation have shown that his bill — or companion legislation originating in the House — would generate more than $590 billion in revenue to the government during the next decade.
U.S. corporations are allowed to defer or delay U.S. income taxes on overseas profits until the money is brought back into the United States.
The Corporate Tax Fairness Act would require U.S. companies to pay taxes on all of their income by ending the deferral of foreign source income.
Copyright 2013 The Associated Press.