Washington, DC – The U.S. Senate Homeland Security and Governmental Affairs Committee’s Permanent Subcommittee on Investigations today held a hearing that appears to be politically motivated. The subcommittee, chaired by thevulnerable Senator Rob Portman (R-OH), heard from a panel of corporate executives – including ones who oversaw corporate inversions –the moving of business operations to a foreign country, in order to avoid paying American taxes.
What Portman doesn’t want you to know, is that he benefited from corporations – including some once based in Ohio – that used inversion in order to skirt paying U.S. taxes.
But Portman’s support of policies that encouraged outsourcing is even more extensive than merely shipping jobs overseas and serving in the Bush Administration at a time when nine corporations committed some form of tax inversion.Unsurprisingly, Pro-Portman PACs, as well as his campaign, have received contributions from corporate inverters and outsourcers, including the Koch Brothers and Ohio companies that took their businesses abroad.
“Facts are facts, and throughout Portman’s career – as a trade representative, as a member of President George W. Bush’s cabinet, and as a United States senator – Rob Portman has consistently sided with big corporations and promoted their interests over those of the Buckeye State,” said Eddie Vale, Vice President of American Bridge 21st Century. “While Ohioans are working hard and paying their fair share of taxes, Rob Portman is holding hearings for tax-evading corporations and missing votes to take fishing trips. Portman is eager to remind corporations of his commitment to policies that support outsourcing and an inversion-friendly tax code, in hopes of continued campaign contributions.”
Nine Companies Committed A Form Of Inversion The Same Years Portman Served In The Bush Administration
PORTMAN SERVED AS TRADE REP AND HEAD OF THE OMB 2005-2007
Portman Served As United States Trade Representative From 2005-2006. According to the Office of the United States Trade Representative, Portman served as United States Trade Representative from 2005 to 2006. [Official Website of the United States Trade Representative, accessed 7/29/15]
Portman Served As Director Of The Office Of Management And Budget From 2006-2007. According to The White House, Portman served as the Director of the Office of Management and Budget from 2006 to 2007. [Official Website of The White House, accessed 7/29/15]
AT LEAST NINE U.S. COMPANIES COMPLETED SOME FORM OF INVERSION DURING THAT PERIOD
At Least Nine Companies Went Through A Transition To Overseas Between 2005 And 2007. According to Bloomberg, Lazard Ltd, Freescale Semiconductor, Travelport Worldwide Ltd., Sensata Technologies, James River Group, Argo Group International Holdings Ltd., Covidien Plc, TE Connectivity Ltd and Western Goldfields Inc, were included in “inverted companies and former divisions that they spun off as independent entities, as well as U.S. firms that got a foreign address through a leveraged buyout or other ownership change” between 2005 and 2007.
Portman Took Money From Former Ohio Companies With Inversions
EATON
Eaton Was Previously Headquartered In Ohio. According to Bloomberg, Eaton was previously headquartered in Ohio and in 2012 shifted its incorporation to Ireland. [Bloomberg, 4/13/15]
Portman And His Related Committees Took Over $20K From Eaton Related Interests
2014 Cycle
In 2013, Alexander M. Cutler Of Eaton Corporation Contributed $2.6K To Portman’s Senatorial Campaign. On 7/27/13, Alexander M. Cutler of Eaton Corporation contributed $2,600 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2013, Eaton Corporation Contributed $2K To Portman’s Senatorial Campaign. On 9/6/13, Eaton Corporation contributed $2,000 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
2010 Cycle
In 2010, Eaton Corporation Contributed $2K To Portman’s Senatorial Campaign. On 6/18/10, Eaton Corporation contributed $2,000 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2010, Sarah Cutler Of Eaton Corporation Contributed $2.4K To Portman’s Senatorial Campaign. On 6/09/10, Sarah Cutler of Eaton Corporation contributed $2,400 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2010, Richard H. Fearon Of Eaton Corporation Contributed $2.4K To Portman’s Senatorial Campaign. On 6/29/10, Richard H. Fearon of Eaton corporation contributed $2,400 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2010, Thomas Gross Of Eaton Corporation Contributed $2.4K To Portman’s Senatorial Campaign. On 6/30/10, Thomas Gross of Eaton Corporation contributed $2,400 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2010, James W. McGill Of Eaton Corporation Contributed $2.4K To Portman’s Senatorial Campaign. On 6/22/10, James W. McGill of Eaton Corporation contributed $2,400 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2009, Alexander M. Cutler Of Eaton Corporation Contributed $2.4K To Portman’s Senatorial Campaign. On 8/20/09, Alexander M. Cutler of Eaton Corporation contributed $2,400 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2009, Alexander M. Cutler Of Eaton Corporation Contributed $2.4K To Portman’s Senatorial Campaign. On 3/26/09, Alexander M. Cutler of Eaton Corporation contributed $2,400 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2009, Taras G. Szmagala Of Eaton Corporation Contributed $500 To The Portman Victory Committee. On 9/25/09, Taras G. Szmagala of Eaton Corporation contributed $500 to the Portman Victory Committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2009, Taras G. Szmagala Of Eaton Corporation Contributed $500 To Portman’s Campaign. On 9/30/09, Taras G. Szmagala of Eaton Corporation contributed $500 to Portman’s campaign. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
In 2009, Sarah Cutler Of Eaton Corporation Contributed $2.4K To Portman’s Senatorial Campaign. On 8/20/09, Sarah Cutler of Eaton Corporation contributed $2,400 to Portman’s election committee. [Data Influence Explorer, “Eaton,” “Portman,” 7/29/15]
STERIS
Steris Was Previously Headquartered In Ohio. According to Bloomberg, Steris was previously headquartered in Ohio and as of April 2015 had a pending shift in incorporation to England. [Bloomberg, 4/13/15]
Portman And His Related Committees Took At Least $20K From Steris Related Interests
2014 Cycle
In 2014, Walter M. Rosebrough, Jr. Of Steris Corp. Contributed $2.5K To Portman’s Senatorial Campaign. On 9/20/2014, Walter M. Rosebrough, Jr. of Steris Corp. contributed $2,500 to Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2013, Steris Corporation Good Government Fund Contributed $2K To Portman’s Senatorial Campaign. On 8/23/13, Steris Corporation Good Government Fund contributed $2,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2013, Steris Corporation Good Government Fund Contributed $500 To Portman’s Senatorial Campaign. On 4/9/13, Steris Corporation Good Government Fund contributed $500 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2013, Steris Corporation Good Government Fund Contributed $500 To Portman’s Senatorial Campaign. On 4/9/13, Steris Corporation Good Government Fund contributed $500 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
2010 Cycle
In 2010, Walter M. Rosebrough, Jr. Of Steris Corp. Contributed $2K To Portman’s Senatorial Campaign. On 5/4/10, Walter M. Rosebrough, Jr. of Steris Corp. contributed $2,000 to Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, Walter M. Rosebrough, Jr. Of Steris Corp. Contributed $1.6K To Portman’s Senatorial Campaign. On 5/4/10, Walter M. Rosebrough, Jr. of Steris Corp. contributed $1,600 to Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, Walter M. Rosebrough, Jr. Of Steris Corp. Contributed $400 To Portman’s Senatorial Campaign. On 5/4/10, Walter M. Rosebrough, Jr. of Steris Corp. contributed $400 to Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, Walter M. Rosebrough, Jr. Of Steris Corp. Contributed $800 To Portman’s Senatorial Campaign. On 9/29/10, Walter M. Rosebrough, Jr. of Steris Corp. contributed $800 to Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2009, Walter M. Rosebrough, Jr. Contributed $1.5K To Portman’s Senatorial Campaign. On 9/15/09, Walter M. Rosebrough, Jr. contributed $1,500 to Portman’s Senate election committee. [Data Influence Explorer, “Rosebrough,” “Portman,” 7/29/15]
In 2010, Steris Corporation Good Government Fund Contributed $2.75K To Portman’s Senatorial Campaign. On 6/21/10, Steris Corporation Good Government Fund contributed $2,750 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, Steris Corporation Good Government Fund Contributed $1K To Portman’s Senatorial Campaign. On 4/27/10, Steris Corporation Good Government Fund contributed $1,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, Peter A. Burke Of Steris Corporation Contributed $1K To Portman’s Senatorial Campaign. On 6/28/10, Peter A. Burke of Steris Corporation contributed $1,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, Donald A. Whitehouse Of Steris Corporation Contributed $1K To Portman’s Senatorial Campaign. On 6/28/10, Peter A. Burke of Steris Corporation contributed $1,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, Robert E. Moss Of Steris Corporation Contributed $1K To Portman’s Senatorial Campaign. On 6/28/10, Peter A. Burke of Steris Corporation contributed $1,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2009, Steris Corporation Good Government Fund Contributed $1K To Portman’s Senatorial Campaign. On 9/14/09, Steris Corporation Good Government Fund contributed $1,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, Steris Corporation Good Government Fund Contributed $250 To Portman’s Senatorial Campaign. On 4/14/10, Steris Corporation Good Government Fund contributed $250 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2010, William Aamoth Of Steris Corporation Contributed $200 To Portman’s Senatorial Campaign. On 6/18/10, William Aamoth of Steris Corporation contributed $200 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
2012 Cycle
In 2012, Steris Corporation Good Government Fund Contributed $2K To Portman’s Senatorial Campaign. On 4/27/12, Steris Corporation Good Government Fund contributed $2,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2011, Steris Corporation Good Government Fund Contributed $1K To Portman’s Senatorial Campaign. On 5/4/11, Steris Corporation Good Government Fund contributed $1,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2011, Steris Corporation Good Government Fund Contributed $1K To Portman’s Promoting Our Republican Team PAC. On 5/12/11, Steris Corporation Good Government Fund contributed $1,000 to Rob Portman’s Promoting Our Republican Team PAC. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2012, Steris Corporation Good Government Fund Was Refunded $2K From Rob Portman Senatorial Campagin. On 6/18/12, Steris Corporation Good Government Fund was refunded $2,000 to Rob Portman’s Senate election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
Prior Cycles
In 2004, Les Vinney Of Steris Corporation Contributed $1K To Portman. On 4/26/04, Les Vinney of Steris Corporation contributed $1,000 to Rob Portman’s election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
In 2003, Les Vinney Of Steris Corporation Contributed $250 To Portman. On 5/16/03, Les Vinney of Steris Corporation contributed $250 to Rob Portman’s election committee. [Data Influence Explorer, “Steris,” “Portman,” 7/29/15]
BURGER KING
2010 Cycle
In 2010, Burger King Corporation PAC Contributed $1K To Portman’s Senatorial Campaign. On 7/30/10, Burger King Corporation PAC contributed $1,000 to Rob Portman’s election committee. [Data Influence Explorer, “Burger King,” “Portman,” 7/29/15]
PORTMAN ALSO RECEIVED CONTRIBUTIONS FROM NON-OHIO COMPANIES THAT SHIFTED ADDRESSES TO OVERSEAS
TE Connectivity
In 2014, TE Connectivity Contributed $1K To Portman’s Senatorial Campaign. On 8/10/14, TE Connectivity contributed $1,000 to Portman’s election committee. [Data Influence Explorer, “Connectivity,” “Portman,” 7/29/15]
Covidien
In 2012, Covidien US Contributed $1K To Portman’s Senatorial Campaign. On 7/6/12, Covidien US contributed $1,000 to Portman’s election committee. [Data Influence Explorer, “Covidien,” “Portman,” 7/29/15]
In 2010, Covidien US Contributed $2.5K To Portman’s Senatorial Campaign. On 9/14/10, Covidien US contributed $2,500 to Portman’s election committee. [Data Influence Explorer, “Covidien,” “Portman,” 7/29/15]
Burger King
2010 Cycle
In 2010, Burger King Corporation PAC Contributed $1K To Portman’s Senatorial Campaign. On 7/30/10, Burger King Corporation PAC contributed $1,000 to Rob Portman’s election committee. [Data Influence Explorer, “Burger King,” “Portman,” 7/29/15]
ROB PORTMAN AND THE KOCHS DEFENDED COMPANIES USING FOREIGN ACQUISITIONS TO AVOID TAXES
Sen. Rob Portman has been supported by the Kochs’ money and friends in the past, he now seems to be supporting their agenda. The Kochs, known for their own billion dollar conglomerate, Koch Industries, have used their organizations to defend corporations avoiding taxes through complicated tax restructuring known as inversions. Through inversions an American corporation declares that its U.S. operations are actually owned by a foreign subsidiary, and uses that move to avoid taxation on the profits that are now “owned” by the foreign company.
These tax maneuvers benefit the corporation but they hurt individual investors by increasing their taxes even as the company saves millions, and take away money that could be spent supporting small businesses. While Koch Industries has not technically used inversions it has utilized a complicated structure of foreign subsidiaries to create “tangles of interlocking corporations” to take advantage of lower taxes overseas.
As the Kochs avoided millions in taxes, they cost Americans even more in support for employees Koch companies here in America have laid off. Even as the Kochs worked the global financial system to their benefit, saving millions, Koch subsidiaries in the U.S. outsourced their workforce causing plants to close and least 2,845 employees to be laid off. The Department of Labor has paid out $756 million through Trade Adjustment Assistance to help outsourced workers in 2013 alone, some of that cost can be attributed Koch Industries and its subsidiaries.
Rob Portman Has A Record Of Supporting Outsourcing And Being Friendly With The Kochs
PORTMAN ALREADY HAS A RECORD SUPPORTING COMPANIES MOVING JOBS OVERSEAS
Portman Voted Against A Bill That Provided Tax Incentives For Companies To Bring Jobs Back From Outside the U.S. And Eliminated Tax Incentives To Companies That Move Jobs Offshore. In July 2012, Portman voted against a bill that, according to CNN, “would give tax breaks for companies that ‘insource’ jobs to the U.S. from overseas while eliminating tax deductions for companies that move jobs abroad.” The bill was defeated in a cloture vote 56-42. [Senate Vote 181, 7/19/2012; CNN, 7/19/2012]
The Bill Would Give Companies Moving Jobs To The US A Credit Equal To 20% Of The Cost Of Bringing Jobs To The U.S. According to a Press Release from Sen. Debbie Stabenow, “Companies bringing jobs home would still be able to claim the current moving expense deduction when bringing jobs home, and would also receive a tax credit equal to 20% of the cost associated with bringing jobs and business activity back to the United States.” [Office of Senator Debbie Stabenow, 6/19/2012]
- Bill Would Have Prevented Businesses From Deducting The Cost Of Moving Personnel, Business Operations Overseas From Their Taxes. According to a press release from Sen. Debbie Stabenow, “Right now, the cost of moving personnel and company operations to a new location is defined as a business expense that qualifies for a tax deduction. Senator Stabenow’s legislation would no longer allow this deduction for companies that move jobs and business activity outside of the U.S.” [Office of Senator Debbie Stabenow, 6/19/2012]
- U.S. Chamber Of Commerce Opposed Bill, Said It “Would Hamper American Worldwide Companies’ Competitiveness.”According to CNN, “In a letter to senators this week, the Chamber of Commerce called the bill ‘misguided’ and said it ‘would hamper American worldwide companies’ competitiveness, increase complexity in the Internal Revenue Code, and threaten economic growth.’ The Chamber said it would count how senators voted on this motion in their annual ‘How they [sic] Voted’ scorecard.” [CNN, 7/19/2012]
2014: Portman Effectively Voted Against Legislation Barring Companies From Deducting The Costs Of Moving Jobs Out Of The U.S. From Their Taxes, And Providing A Tax Credit For Moving Jobs Into The U.S. In July 2014, Portman effectively voted against a bill that, according to Congressional Quarterly, “would give businesses a tax credit for up to 20 percent of the expenses incurred to bring work done in foreign countries back into the United States, if the business also increases its number of full-time employees. It also would prohibit tax deductions for expenses incurred when moving jobs outside the U.S.” The vote was on a motion to end debate on the bill, which required 60 votes to succeed. The Senate rejected the motion by a vote of 54 to 42. [Senate Vote 249, 7/30/14; Congressional Quarterly, 7/30/14]
THE KOCHS AND KOCH INDUSTRIES HAVE DONATED TO PORTMAN
Senator Portman Received $6,000 From Koch Industries PAC In 2015. According to Environment and Energy Daily, “With more than a year to go before Ohio voters head to the polls, coal and fossil fuel interests are putting thousands of dollars behind Sen. Rob Portman, who may be in for a tough re-election fight. They are supporting the Republican incumbent, even as the Democratic field has yet to solidify. […] Portman has expressed support for increased natural gas production through hydraulic fracturing. It’s therefore no surprise that America’s Natural Gas Alliance gifted his campaign $1,000. And the political action committee for Koch Industries Inc., tied to billionaire industrialists Charles and David Koch, gave Portman $6,000.” [Environment and Energy Daily, 5/5/15]
Koch Industries Gave Sen. Portman $25,600 In The 2014 Election Cycle. According to the Center for Responsive Politics, Rob Portman received $25,600 from Koch Industries. [OpenSecrets, viewed 7/28/15]
Koch Industries Gave Sen. Portman $22,000 In The 2012 Election Cycle. According to the Center for Responsive Politics, Rob Portman received $22,600 from Koch Industries. [OpenSecrets, viewed 7/28/15]
Koch Industries Gave $17,200 To Portman For His 2011 Race. According to Cleveland.com, “The oil and gas industry closely follows the lobbying industry in financial support for [Rob] Portman, giving him $220,458. Donors include top executives of Texas-based Marathon Oil ($21,800) and Kansas-based Koch Industries ($17,200), a privately held oil and manufacturing concern. Brothers Charles and David Koch have bankrolled opposition campaigns against President Barack Obama’s agenda on the environment, healthcare and the economy, according to the New Yorker. Koch money for Portman came from each of the brothers, David’s wife, Julia, and their company PAC.” [Cleveland.com, 7/13/10]
- Both David And Charles, David’s Wife Julia And Their Company PAC Contributed To Portman. According to Cleveland.com, “Brothers Charles and David Koch have bankrolled opposition campaigns against President Barack Obama’s agenda on the environment, healthcare and the economy, according to the New Yorker. Koch money for Portman came from each of the brothers, David’s wife, Julia, and their company PAC” [Cleveland.com, 7/13/10]
2002-2010: Portman Received A Total Of $11,600 From Members Of The Koch Family. According to Conservative Transparency, between 2002 and 2010 Portman received a total of $11,600 via two committees. [Conservative Transparency, Rob Portman, Viewed 7/23/15]
FREEDOM PARTNERS MEGA-DONOR ROBERT MERCER FUNDED THE PORTMAN VICTORY COMMITTEE
Robert Mercer Was One Of The Two People Who Have Donated To Rob Portman’s Portman Victory Committee. Hedge fund operator Robert Mercer almost never talks about himself, and neither do the people who know him. Yet Mercer’s money is sure making a lot of noise on the campaign trail. […]Senator Rob Portman, the National Republican Senatorial Committee’s finance chair and a potential 2016 Republican presidential candidate simply said, ‘I don’t have any insights’ about the man who is one of two people who’ve donated to the Portman Victory Committee. The other contributor is Mercer’s wife of more than 40 years, Diana. ‘The conversation I had with him was about the direction of the country. His focus with me was on the economic issues and the fiscal issues,’Portman said.
Bloomberg: Mercer Gave $2.5 Million To “The Koch Brothers’ Organization,” Freedom Partners Action Fund, More Than “The Kansas Founders, David And Charles, Who Each Chipped In Just $2 Million.” According to Bloomberg, “Hedge fund operator Robert Mercer almost never talks about himself, and neither do the people who know him. Yet Mercer’s money is sure making a lot of noise on the campaign trail. The third most generous Republican donor this cycle, Mercer has cut checks for a total of $37 million in the past six years, supporting pro-life candidates, those who deny man-made global warming, as well as helping fund the effort to block construction of a mosque near the site of theSeptember 11 attacks in New York. In fact, this year he gave more to the Koch brothers’ organization, $2.5 million, than the Kansas founders, David and Charles, who each chipped in just $2 million to Freedom Partners Action Fund.” [Bloomberg, 10/22/14]
AFP ANNOUNCED THAT PORTMAN WOULD BE FEATURED AT ITS “DEFENDING THE AMERICAN DREAM SUMMIT,” CALLING PORTMAN A “FREE-MARKET CHAMPION”
Sen. Rob Portman And Sen. Ted Cruz Were Announced As Featured Speakers At AFP’s Defending The American Dream Summit In Ohio In August 2015. According to The Columbus Dispatch, “Texas Sen. Ted Cruz will bring his presidential campaign to Columbus in August to Americans for Prosperity’s ‘signature annual event,’ the Defending the American Dream Summit. Cruz and Ohio Sen. Rob Portman will be the featured speakers at the Greater Columbus Convention Center for the gathering, funded by GOP megadonors David and Charles Koch.” [Columbus Dispatch, 6/8/15]
AFP-Ohio’s Luke Hilgemann: “We’re Looking Forward To An Opportunity To Celebrate Victories, Regroup For The Year Ahead, And Hear From Free-Market Champions Like Senators Cruz And Portman.” According to The Columbus Dispatch, “‘We’re looking forward to an opportunity to celebrate victories, regroup for the year ahead, and hear from free-market champions like Senators Cruz and Portman, who will talk to us about their plans to keep freedom on the march in the heartland and across the country,’ the group’s [AFP-Ohio’s] chief executive officer, Luke Hilgemann, in a release.” [Columbus Dispatch, 6/8/15]
PORTMAN’S CHIEF OF STAFF PREVIOUSLY SERVED AS “A TOP LOBBYIST” FOR THE KOCH-BACKED NATIONAL FEDERATION OF INDEPENDENT BUSINESS
Sen. Rob Portman’s New Chief Of Staff, Mark Isakowitz, Previously “Served As A Top Lobbyist For The National Federation Of Independent Business.” According to Politico, “Ohio Republican Rob Portman is bringing in veteran lobbyist Mark Isakowitz as his chief of staff. Sources confirmed that Isakowitz, who is a named partner of the all-GOP lobbying firm Fierce, Isakowitz & Blalock, will be returning to Capitol Hill in January. He is replacing Portman’s longtime chief of staff Rob Lehman. […]Isakowitz is a Cleveland, Ohio native and has worked for many years on K Street. Before joining Fierce, Isakowitz & Blalock in 1998, he served as a top lobbyist for the National Federation of Independent Business. Isakowitz also managed NFIB’s House lobbying team and was NFIB’s specialist on health care.” [Politico, 12/9/14]
The National Federation Of Independent Business “Got More Money In 2012 From A Group Backed By Billionaire Industrialists Charles And David Koch Than Any Other Single Source.” According to CNN, “The National Federation of Independent Business is one of the most influential small-business advocacy groups in the country. They battle against government regulation, higher taxes and, perhaps most famously, Obamacare. And they do it all as the self-described ‘voice of small business.’ But it turns out that the champions of Main Street America got more money last year from a group backed by billionaire industrialists Charles and David Koch than any other single source.” [CNN, 11/21/13]
- NFIB Received $2.5 Million From Koch-Backed Freedom Partners. According to CNN, “The National Federation of Independent Business is one of the most influential small-business advocacy groups in the country. They battle against government regulation, higher taxes and, perhaps most famously, Obamacare. And they do it all as the self-described ‘voice of small business.’ But it turns out that the champions of Main Street America got more money last year from a group backed by billionaire industrialists Charles and David Koch than any other single source. NFIB and its affiliated groups received $2.5 million from Freedom Partners Chamber of Commerce, a conservative advocacy group with deep ties to the Koch empire. Of the five men that sit on the group’s board, four are current or former employees of Koch companies and one is a friend of Charles Koch’s.” [CNN, 11/21/13]
KOCH COMPANIES USED FOREIGN ACQUISITIONS TO AVOID TAXES WHILE KOCH GROUPS DEFENDED SIMILAR PRACTICES
By Avoiding Taxes Overseas, Corporations Hurt Americans
Wall Street Journal: “When U.S. Companies Buy Overseas Firms In ‘Inversion’ Deals To Reduce Their Tax Payments, Investors Holding Those U.S. Stocks…Often Get Walloped With Higher Taxes.” According to the Wall Street Journal, “When U.S. companies buy overseas firms in ‘inversion’ deals to reduce their tax payments, investors holding those U.S. stocks in taxable accounts often get walloped with higher taxes. The latest Tax Report column explained this surprising side effect and suggested ways for investors to ease the tax hit.” [Wall Street Journal, 8/5/14]
MarketWatch Senior Columnist Chuck Jaffe On Inversions: Companies “Want The Full Benefits Of Being United States Citizens Without Paying Full Price For It.” According to an opinion by MarketWatch senior columnist Chuck Jaffe, “Functionally, an inversion is the way corporations can actually live by the old quip attributed to one of my father’s favorite entertainers, Arthur Godfrey, who said he was ‘proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money.’ Mind you, the companies here want the full benefits of being United States citizens without paying full price for it.”[Chuck Jaffe – MarketWatch, 8/17/14]
- Jaffe: “Responsible Shareholders Will Pay For These Transactions” Because “Individual Shareholders Can’t Dodge Tax Obligations The Way Companies Can.” According to an opinion by MarketWatch senior columnist Chuck Jaffe, “That’s why, on a personal level, this grinds me; it’s not a ‘buy American’ thing, it’s more that I’m the son of immigrants who were grateful to be taken in by this country, and I was taught that if you were going to enjoy the benefits of living here, you were supposed to be a responsible citizen. And responsible shareholders will pay for these transactions, which is the real deal-breaker for me. Individual shareholders can’t dodge tax obligations the way companies can.” [Chuck Jaffe – MarketWatch, 8/17/14]
Jaffe: A Company That Uses Inversions “Could Have Dodged Billions In Taxes,” But Individual Shareholders Could Not Have Avoided Having Thousands Added” To Their Tax Bill. According to an opinion by MarketWatch senior columnist Chuck Jaffe, “Under current IRS rules, investors in companies that complete an inversion will be treated as if they actually sold all their shares; if the shares are in a taxable account — like my Pfizer stock — they’ll owe taxes on all gains earned since those shares were purchased, even if they wish to continue as shareholders in the company. In short, if Pfizer-AstraZeneca had gone through, the company could have dodged billions in taxes, but I could not have avoided having thousands added to my tax bill. That’s in my best interest? Bzzzt. Wrong answer.” [Chuck Jaffe – MarketWatch, 8/17/14]
Hundreds Of Small Businesses Joined A Campaign Against Offshore Tax Havens, Contending The “$37 Billion” In Taxes Corporations Have Avoided Paying “Could Be Used To Fund Initiatives To Support America’s Small Businesses.” According to the New York Times, “Offshore tax havens have a new critic: small businesses. On Tuesday, hundreds of these businesses will join in the announcement of a grass-roots campaign against tax avoidance that has already drawn support from a prominent lawmaker. The campaign, Business and Investors Against Tax Haven Abuse, is backed by Senator Carl Levin, Democrat of Michigan, who in recent years has investigated offshore tax havens and the large companies and wealthy investors that use them. Senator Levin plans to announce the campaign with its supporters, a coalition of three nonprofit groups — the American Sustainable Business Council, Business for Shared Prosperity and Wealth for the Common Good. They will release a 25-page report that contends that American multinational corporations use havens to avoid $37 billion in federal taxes each year, a figure the groups call conservative. ‘This $37 billion could be used to fund initiatives to support America’s small businesses — the nation’s biggest job creators — by increasing their access to capital, increasing their opportunities to invest and rewarding entrepreneurship,’ the report says.” [New York Times, 7/20/10]
Koch Groups Have Defended Companies’ Use Of Corporate Inversions
AFP CLAIMED COMPANIES ARE FORCED TO TAKE ADVANTAGE OF FOREIGN TAX RATES BECAUSE OF “AMERICA’S PUNITIVE TAX STRUCTURE”
Americans for Prosperity: “America’s Punitive Tax Structure Has Resulted In Many…Companies Seeking Investment Opportunities Abroad.” According to a post on Americans for Prosperity’s website, “America’s stratospheric 35 percent corporate tax rate is one of the highest in the world. The tax is so high, in fact, that it has made the U.S. a prohibitively expensive place for many American companies to invest their overseas profits. Rather than bringing those profits home to grow the economy and create jobs, America’s punitive tax structure has resulted in many of these companies seeking investment opportunities abroad.” [AmericansforProsperity.org/article, 7/17/14]
AFP: “U.S. Firms Use Tax Inversions Take Advantage Of Lower Foreign Tax Rates (In The Form Of Mergers Or Acquisitions) As Opposed To The Punitive U.S. Rate On Overseas Income.” According to a post on Americans for Prosperity’s website, “These deals are often referred to as ‘tax inversions,’ a process in which U.S. firms take advantage of lower foreign tax rates (in the form of mergers or acquisitions) as opposed to the punitive U.S. rate on overseas income. There have been a number of such mergers in recent years, with the latest being a $42.9 billion deal between U.S. based medical device manufacture Medtronic and Ireland-based Covidien. Rather than being forced to pay the U.S. punishing tax rate of more than 35 percent, Medtronic will pay the Irish rate of 12.5 percent – saving millions of dollars in tax liabilities. Not surprisingly, the frequency of these tax inversion deals has been rapidly increasing, with 4 of the largest 6 mergers this year offering potential tax benefits according to the Wall Street Journal.” [AmericansforProsperity.org/article, 7/17/14]
AFP: “The Most Recent Attempt” To Stop Inversions Was A Bill Sponsored By Rep. Chris Van Hollen That “Would Classify Any Company As ‘Domestic’ If More Than 60 Percent Of Ownership Remained Based In The U.S.”According to a post on Americans for Prosperity’s website, “Fearing a fleeing corporate tax base, politicians have proposed a variety of ‘solutions’ to this dilemma without much success – primarily because these ‘solutions’ seek to treat the symptom rather than the disease. The most recent attempt, entitled the ‘Stop Corporate Expatriation and Invest in American’s Infrastructure Act of 2014,’ comes to us courtesy of Representative Chris Van Hollen (D-Md.). The legislation would classify any company as ‘domestic’ if more than 60 percent of ownership remained based in the U.S. compared to the current rate of 80 percent. Firms would simply alter the terms of the mergers to get around this new rule and Van Hollens new rule won’t be worth the paper it’s printed on. Moreover, if any proposal akin to Van Hollen were to gain traction, it would likely speed up corporate inversions – with companies rushing to get overseas while the getting is still good.” [AmericansforProsperity.org/article, 7/17/14]
- AFP: “Firms Would Simply Alter The Terms Of The Mergers” To Get Around Van Hollen’s Rule, “And It Won’t Be Worth The Paper It’s Printed On.” According to a post on Americans for Prosperity’s website, “Fearing a fleeing corporate tax base, politicians have proposed a variety of ‘solutions’ to this dilemma without much success – primarily because these ‘solutions’ seek to treat the symptom rather than the disease. The most recent attempt, entitled the ‘Stop Corporate Expatriation and Invest in American’s Infrastructure Act of 2014,’ comes to us courtesy of Representative Chris Van Hollen (D-Md.). The legislation would classify any company as ‘domestic’ if more than 60 percent of ownership remained based in the U.S. compared to the current rate of 80 percent. Firms would simply alter the terms of the mergers to get around this new rule and Van Hollens new rule won’t be worth the paper it’s printed on. Moreover, if any proposal akin to Van Hollen were to gain traction, it would likely speed up corporate inversions – with companies rushing to get overseas while the getting is still good.” [AmericansforProsperity.org/article, 7/17/14]
AFP: Because The U.S. Doesn’t Have A “Tax Code Incentivizing Companies” To Stay In The U.S., Businesses Have To “Seek Foreign Investment Opportunities Or Face A Competitive Disadvantage With Their Global Rivals.”According to a post on Americans for Prosperity’s website, “The fundamental problem with this proposal – as with so many others that have come before it – is that it fails to address the root cause for these mergers: the outrageously high U.S. corporate tax rate. Rather than creating a competitive tax code incentivizing companies to stay, or even move to the U.S., businesses are placed in a position of having to choose to seek foreign investment opportunities or face a competitive disadvantage with their global rivals.” [AmericansforProsperity.org/article, 7/17/14]
LIBRE: FIRMS “HAVE CONTEMPLATED CORPORATE INVERSIONS BECAUSE THE U.S. CORPORATE TAX RATE IS THE HIGHEST” IN THE WORLD
LIBRE Initiative: A Growing Number Of Firms Have Contemplated Corporate Inversions “Because The U.S. Corporate Tax Rate Is The Highest Among The World’s Advanced Economies.” According to a press release from the LIBRE Initiative, “The Obama Administration has announced a new set of rules to discourage corporate ‘inversions,’ in which U.S. companies merge with foreign firms and shift their headquarters abroad. Because the U.S. corporate tax rate is the highest among the world’s advanced economies, and because it imposes taxes on profits earned in other countries, a growing number of firms have contemplated this move. With headquarters outside the United States, they continue to pay taxes on their U.S. sales, but not on profits earned elsewhere in the world. Some have portrayed this as a move to keep pace with foreign competitors who pay lower tax rates.” [LIBRE Initiative Press Release, 7/23/15]
LIBRE Policy Director Jorge Lima: The Obama Administration’s Tax Inversion Changes Imposed A “Regulation-Heavy, Short-Term, Unilateral Fix.” According to a LIBRE Initiative Press Release, “The Obama Administration has announced a new set of rules to discourage corporate ‘inversions,’ in which U.S. companies merge with foreign firms and shift their headquarters abroad. […] Jorge Lima, Policy Director of The LIBRE Initiative, released the following statement: ‘Once again, the White House has chosen not to work with Congress to address the problems with our tax code – but instead to impose a Regulation -heavy, short-term, unilateral fix.’” [LIBRE Press Release, 9/23/14]
Lima: It’s Not Clear The Change To Limit Inversions “Is Legally Permitted” According to a LIBRE Initiative Press Release, “The Obama Administration has announced a new set of rules to discourage corporate ‘inversions,’ in which U.S. companies merge with foreign firms and shift their headquarters abroad. […]Jorge Lima, Policy Director of The LIBRE Initiative, released the following statement: ‘Once again, the White House has chosen not to work with Congress to address the problems with our tax code – but instead to impose a regulation-heavy, short-term, unilateral fix. The Treasury Department says more changes may be coming, and it’s not clear that even this change is legally permitted. This is not the way to enhance competitiveness, encourage economic growth, and ensure tax compliance.’” [LIBRE Press Release, 9/23/14]
Lima: “Today’s Rule Change Is Simply Another Attempt To Regulate Market Behavior Through Government Rules And Doesn’t Get America Any Closer To A Solution It Needs.” According to a LIBRE Initiative Press Release, “Jorge Lima, Policy Director of The LIBRE Initiative, released the following statement: ‘The White House and Congressional leaders have said for years that the U.S. tax code needs to be overhauled. Families pay too much – especially after payroll tax hikes and new health care taxes. Companies face the highest corporate rates in the advanced world – which harms job creation. And loopholes and corporate welfare remain commonplace. These problems will eventually have to be addressed – by Congress and the president working together. Today’s rule change is simply another attempt to regulate market behavior through government rules and doesn’t get America any closer to a solution it needs.’” [LIBRE Press Release, 9/23/14]
Published: Jul 30, 2015