Us Congress 2023-2024 Regular Session

Us Congress House Bill HB884

Introduced
2/9/23  

Caption

No Tax Breaks for Outsourcing Act

Impact

The implications of HB884 are far-reaching, particularly for multinational corporations that operate both domestically and internationally. By enforcing rules for current year inclusion of net CFC tested income, companies may face increased costs associated with their overseas operations. This could lead to a shift in corporate strategies, where firms may reconsider or restructure their global activities to minimize tax liabilities. Moreover, the bill includes provisions about the limitation on the deduction of interest and addresses the treatment of inverted corporations, further tightening the tax landscape for businesses trying to shield income from the U.S. tax system.

Summary

House Bill 884, titled the 'No Tax Breaks for Outsourcing Act', proposes significant changes to the Internal Revenue Code of 1986. The bill primarily aims to amend the existing tax framework regarding controlled foreign corporations (CFCs) by introducing current year inclusion of net CFC tested income. This move intends to reduce tax benefits for companies that outsource jobs overseas, thereby encouraging businesses to maintain their operations within the United States. It seeks to increase tax revenue from corporations by adjusting tax obligations to reflect income more accurately based on where business activities occur rather than where they report income.

Contention

Notable points of contention within HB884 arise from varying perspectives on its impact on businesses and the broader economy. Proponents argue that the bill helps prevent tax avoidance strategies that result in job losses domestically, while critics assert that it may inadvertently burden U.S. companies, making them less competitive on the global stage. Furthermore, there is concern among business groups about the complexity and compliance costs that could emerge from the new regulations, potentially leading to adverse economic consequences.

Companion Bills

US SB357

Same As No Tax Breaks for Outsourcing Act

US HB8268

Related Stop Corporate Inversions Act of 2024

US SB4275

Related Stop Corporate Inversions Act of 2024

Previously Filed As

US HB995

No Tax Breaks for Outsourcing Act

US SB357

No Tax Breaks for Outsourcing Act

US SB409

No Tax Breaks for Outsourcing Act

US SB737

No Tax Breaks for Union Busting (NTBUB) Act

US HB7933

Corporate Tax Dodging Prevention Act

US SB2021

Close the Round-Tripping Loophole Act

US SB1605

International Competition for American Jobs Act

US HB34

Assuring Medicare’s Promise Act of 2023 This bill increases net investment income tax revenues by applying such tax to the trade or business income of certain high income taxpayers and includes the increased tax revenues in the Federal Hospital Insurance Trust Fund.

US SB4098

Corporate Tax Dodging Prevention Act

US HB5456

No Tax Breaks for Union Busting (NTBUB) Act

Similar Bills

US SB357

No Tax Breaks for Outsourcing Act

US SB2491

Wall Street Tax Act of 2023

US HB4589

To amend the Securities Exchange Act of 1934 to provide for the registration of proxy advisory firms, and for other purposes.

US SB2583

Farmland for Farmers Act of 2023

US HB4767

Protecting Americans’ Retirement Savings from Politics Act

US HB4870

Wall Street Tax Act of 2023

US HB3938

Build It in America Act

US HB448

Putting Investors First Act of 2023 This bill requires a proxy advisory firm to register with the Securities and Exchange Commission and prohibits an unregistered proxy advisory firm from using interstate commerce to provide proxy-voting advice, research, analysis, or recommendations to any client. With respect to these firms, the bill (1) establishes procedures for both registration and termination of registration; (2) requires each firm to employ an ombudsman, designate a compliance officer, and publicly disclose conflicts of interest; (3) allows issuers to assess and comment on proxy voting recommendations; and (4) prohibits unfair, coercive, or abusive practices. The bill establishes a private right of action against a proxy advisory firm that endorses an approved proposal that is not supported by the issuer and is found to be illegal.