Business advocates like economist Martin Regalia of the U.S. Chamber of Commerce, blame the U.S. tax system for driving companies offshore in a desperate attempt to stay competitive with foreign corporations who have much sweeter tax deals. But politicians lay the blame squarely on the shoulders of the corporations, and want them to be barred from government contracts if they set up shop in tax-friendly havens like Bermuda.
This week, Sen. Max Baucus and Sen. Chuck Grassley – chair and ranking member of the Committee on Finance, introduced the bipartisan "Reclaiming Expatriated Contracts and Profits Act." The bill complements their earlier legislation to shut down corporate inversions by adding a new measure to blackball any expatriated company from receiving new government contracts, and forcing ones who already have contracts to lower their bids by 10 percent.
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