New Jersey Senate Bill SCR76

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Urges Congress and President to enact legislation which prohibits awarding federal contracts to inverted domestic corporations.

Impact

If enacted, the resolution would compel federal legislators to consider the economic consequences of allowing inverted corporations to receive federal contracts. This could have significant implications on state economy, particularly for businesses that choose to operate traditionally within the United States. The resolution points to a larger movement suggesting that such inversions undermine the economic stability of the country by reducing tax revenue from large corporations. The push for stricter rules around federal contracting aligns with efforts to maintain a fair competitive landscape for U.S. companies.

Summary

SCR76 is a Senate Concurrent Resolution introduced in the New Jersey legislature that urges the United States Congress and the President to take legislative action to prohibit the awarding of federal contracts to inverted domestic corporations. An inverted domestic corporation is defined as a company that was once incorporated in the U.S. but has since moved its incorporation to a foreign country, often to take advantage of lower corporate tax rates. The resolution highlights the economic implications of such practices and expresses the need for measures to counteract tax-motivated inversions.

Contention

Notably, the resolution reflects a growing concern about economic patriotism, with calls for a comprehensive response to corporate inversions. Critics argue that allowing inverted corporations to compete for federal contracts undercuts American businesses that operate within the tax framework established in the U.S. Supporters of SCR76 assert that such legislation is crucial to maintaining a level playing field, as inverted corporations often exploit gaps in tax law and corporate regulations. The debate around this issue underscores tensions between encouraging business growth and ensuring fair taxation.