Friday, July 01, 2005

VOTE ALERT: 28 Dems Block Crackdown on Corporate Tax Evaders

by David Sirota

Rep. Rosa DeLauro (D) last night offered her legislation to ban government contracts from going to companies that abuse offshore tax loopholes and evade U.S. taxes. In 2002, DeLauro actually passed this legislation as part of the bill creating the Department of Homeland Security, as Democrats stayed unified, and Republicans capitulated (unfortunately, it was later removed in the final bill). This year, however, 28 Democrats sold out to Corporate America, and helped defeat the legislation outright.

That's right, when DeLauro offered her legislation this time around, she attracted 20 Republican votes - plenty to pass the legislation if her own party had stood up and done the right thing. However, 28 Democrats voted against the legislation, siding with the companies that have the nerve to openly abuse tax loopholes. These companies want to be able to get fat off government contracts, even though they are ripping off U.S. taxpayers at a time of war and record deficits. Yet, instead of prohibiting those contracts from going to these unpatriotic companies, 28 Democrats joined with 203 Republicans to sell out and say bilking America is A.O.K.

Particularly confusing/disappointing was Rep. Rahm Emanuel's (D-IL) vote against DeLauro's legislation. He actually penned a 2003 op-ed in the Wall Street Journal where he advocated "an aggressive attack on the tax code" that "should start with corporate expatriates" (you can also see the op-ed here). He chastised President Bush for "block Democratic efforts to stop American companies from incorporating through a postal drop in island tax-havens" and said he was appalled that "some corporations are actually rewarded with federal contracts while they move their corporate headquarters to Bermuda" - the very thing that the legislation he voted against would have stopped.

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