LANSING – State Representative Henry Yanez (D-Sterling Heights) said today that he’s introducing a House Concurrent Resolution (HCR) demanding that Congress take action to close this corporate tax loophole that allows U.S. companies to merge with foreign-owned companies to avoid paying U.S. taxes.
“The latest U.S. corporation to try this tax avoidance scheme is Burger King who is merging with Canadian company Tim Hortons, and I say enough is enough,” said Yanez. “Congress needs to act and close this loophole that drains tax revenue from our communities.”
The Yanez-sponsored HCR calls on Congress and the president to immediately close the inversion loophole before more corporations shift their “tax home” out of the country while Congress continues to work on comprehensive tax reform. The resolution points out that when corporations take advantage of this tax inversion while still doing business here in the U.S., they unfairly shift the burden of the cost of the public services they enjoy to other businesses and individuals. Less revenue could result in increased budget deficits in future years.
“Middle-class Michigan families have already seen their taxes increase dramatically over the past few years,” said Yanez. “Now with more companies like Burger King relocating their headquarters overseas and avoiding paying their fair share of taxes, Michigan residents ultimately will get stuck with the bill,” said Yanez. “Meanwhile, I’ll continue fighting to repeal the Michigan tax increases that are hurting our families, and I hope Congress will take care of closing this loophole that will put an undue burden on our communities.”