San­ders Blasts Cor­po­rate De­sert­ers

Stanstead Journal - - FORUM - Ames, Iowa

S. Sen. Bernie San­ders on Mon­day de­nounced “cor­po­rate de­sert­ers” af­ter John­son Con­trols and Tyco In­ter­na­tional an­nounced a plan to merge the man­u­fac­tur­ing gi­ants in the lat­est ex­am­ple of a U.S.based com­pany ac­quir­ing a for­eign firm to avoid pay­ing U.S. taxes. “The po­ten­tial John­son-Tyco merger would be a disas­ter for Amer­i­can tax­pay­ers," San­ders said. "Prof­itable com­pa­nies that have re­ceived cor­po­rate wel­fare from Amer­i­can tax­pay­ers should not be al­lowed to re­nounce their U.S. cit­i­zen­ship to avoid pay­ing U.S. taxes. Th­ese cor­po­rate in­ver­sions must stop. “My mes­sage to th­ese cor­po­rate de­sert­ers is sim­ple: You can't be an Amer­i­can com­pany only when you want cor­po­rate wel­fare from Amer­i­can tax­pay­ers or you want lu­cra­tive con­tracts from the fed­eral govern­ment," San­ders con­tin­ued. "If you want the ad­van­tages of be­ing an Amer­i­can com­pany then you can’t run away from Amer­ica to avoid pay­ing taxes.” San­ders last year in­tro­duced the Cor­po­rate Tax Dodg­ing Preven­tion Act. It would end the in­ver­sion tax scam by treat­ing cor­po­ra­tions as Amer­i­can cor­po­ra­tions for tax pur­poses when it is still ma­jor­ity owned by U.S. in­ter­ests. In Novem­ber, San­ders called on the Obama ad­min­is­tra­tion and Congress to stop a sim­i­lar deal in­volv­ing Pfizer and Al­ler­gan that would lead to higher pre­scrip­tion drug prices. “The Pfizer-Al­ler­gan merger would be a disas­ter for Amer­i­can con­sumers who al­ready pay the high­est prices in the world for pre­scrip­tion drugs," San­ders said at the time. "It also would al­low an­other ma­jor Amer­i­can cor­po­ra­tion to hide its prof­its over­seas." San­ders’ Se­nate bill also would also stop cor­po­ra­tions from avoid­ing $100 bil­lion in taxes a year by stash­ing their prof­its in the Cay­man Is­lands and other off­shore tax havens.

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