This week, the Senate may try to reconsider a package of temporary tax provisions (tax extenders). Efforts to advance the provisions in the Senate failed last week because of Republican objections about the amendment process.
In addition, Sen. Carl Levin (D-MI) and Rep. Sander Levin (D-MI) are expected to introduce legislation to discourage inversions. Sen. Levin issued a statement, saying: “I’ve long been concerned about inversions – companies moving offshore on paper, for tax purposes, while the management and operations remain in the United States. It’s become increasingly clear that a loophole in our tax laws allowing these inversions threatens to devastate federal tax receipts. We have to close that loophole. I am talking to my colleagues about legislation to close the loophole, which I intend to introduce soon. Companies that exploit this loophole benefit from the protections and services the federal government provides, including patent protection, research and development tax credits, national security and more; they shouldn’t be allowed to shift their tax burden onto others.”