2014: Schweikert Effectively Voted Against Blocking Corporate Inversions When The Resulting Corporation Is Run From, And Conducts A Significant Amount Of Business In, The U.S. In September 2014, Schweikert effectively voted against an amendment that, according to Congressional Quarterly, "would [have] allow[ed] businesses to claim a tax credit of up to 20 percent of expenses related to returning American jobs from overseas. It would [have] den[ied] tax deductions for the costs of sending American jobs overseas. It also would [have] prohibit[ed] U.S. companies from reincorporating overseas through an inversion if the combined foreign entity is managed and controlled in the U.S. and conducts a significant percentage of its business activities in the U.S. It also would [have] den[ied] the tax benefits in the [underlying] bill to inverted corporations." The underlying bill, according to a separate Congressional Quarterly article, was a package of 15 bills that had already passed the House. Its "numerous tax provisions[] includ[e] those to repeal the 2.3% medical device tax included in the 2010 health care overhaul, and to make permanent the current ban on state and local taxation of Internet access, the research and development tax credit, the 50% depreciation rules for businesses and increased expensing limits for small businesses and farms, as well as certain rules for S-Corporations." The amendment would have also required the House to consider several proposed pieces of legislation, including a minimum wage increase; the Paycheck Fairness Act; a student loan program allowing those with loans to refinance them at current interest rates, paid for with a so-called "Buffet Tax;" and a paid family sick leave requirement. The vote was on a motion to recommit the underlying bill and report it back with the specified amendment; the House rejected the motion by a vote of 191 to 218. [House Vote 512, 9/18/14; Congressional Quarterly, 9/15/14; Congressional Quarterly, 6/11/14; Congressional Record, 9/18/14; Tierney press release, 5/6/14; CRS Summary of H.R. 1286, 3/20/13; Congressional Actions, H.R. 4]
2014: Schweikert Effectively Voted Against Prohibiting Inverted Companies From Receiving Tax Benefits Found In The Tax Extenders Legislation. In December 2014, Schweikert voted against an amendment that would prohibit companies that have "inverted" from receiving tax benefits found in a tax extenders bill. According to Congressional Quarterly, the amendment "would bar 'inverted' corporations that change their residence from the United States in order to avoid paying U.S. taxes from receiving the tax benefits in the bill." The underlying bill was a tax extenders package which included a renewal of the individual deduction for state and local sales taxes, the research and development tax credit, bonus depreciation and other expensing rules. The vote was on a motion to recommit. The House rejected the motion by a vote of 197 to 223. [House Vote 543, 12/3/14; Congressional Quarterly, 12/3/14; Congressional Quarterly, 12/3/14]
Rep. Richard Neal (D-MA): Companies That Have Inverted Should Not Be Allowed To Benefit From The Same Credits That American Business Do Which Have Stayed Here Dutifully. According to a floor speech , Rep. Neal said, "Now, my motion to recommit today is very simple. Those companies that have inverted cannot take advantage of the very tax benefits that we are going to vote upon in a few minutes, which, by the way, I favor extending. If you have inverted, you should not be allowed the same credits and deductions and exclusions that American businesses who have stayed here dutifully, respectfully, and with great patriotic fervor continue to pay." [Congressional Record, 12/3/14]
Rep. Richard Neal (D-MA): United States Will Lose $2 Billion Next Year Alone And Has Lost $9 Billion Since 1982 Due To Inversions. According to a floor speech, Rep. Neal said, "Recent reports have stated that the United States stands to lose $2 billion next year alone, and since the first inversion in 1982, we have lost more than $9 billion. Sadly, these inversions are a part of an epidemic that started a decade ago. CRS points out that at least 47 companies have inverted since the beginning of the last year, 19 inversion deals are still pending, and 14 more are sure to come in the coming year alone. The Joint Committee on Taxation says now it is costing us $33.6 billion in lost tax revenue because of our inability to deal with corporate tax inversions." [Congressional Record, 12/3/14]
Rep. David Camp (R-MI): This Would Make The Tax Code More Complex. According to a floor speech, Rep. Camp said, "What this does is make our Tax Code more complex, makes American workers and American employers less competitive, and it will actually hurt our economy and stifle growth." [Congressional Record, 12/3/14]
2014: Schweikert Effectively Voted Against Blocking Inverted U.S. Corporations From Claiming Several Tax Benefits, Including The Research And Development Credit, And Against Continuing To Apply The ACA's Medical Device Excise Tax To Them Even After Its Repeal. In September 2014, Schweikert effectively voted against an amendment that, according to Congressional Quarterly, "would [have] allow[ed] businesses to claim a tax credit of up to 20 percent of expenses related to returning American jobs from overseas. It would [have] den[ied] tax deductions for the costs of sending American jobs overseas. It also would [have] prohibit[ed] U.S. companies from reincorporating overseas through an inversion if the combined foreign entity is managed and controlled in the U.S. and conducts a significant percentage of its business activities in the U.S. It also would [have] den[ied] the tax benefits in the [underlying] bill to inverted corporations." The underlying bill, according to a separate Congressional Quarterly article, was a package of 15 bills that had already passed the House. Its "numerous tax provisions[] includ[e] those to repeal the 2.3% medical device tax included in the 2010 health care overhaul, and to make permanent the current ban on state and local taxation of Internet access, the research and development tax credit, the 50% depreciation rules for businesses and increased expensing limits for small businesses and farms, as well as certain rules for S-Corporations." The amendment would have also required the House to consider several proposed pieces of legislation, including a minimum wage increase; the Paycheck Fairness Act; a student loan program allowing those with loans to refinance them at current interest rates, paid for with a so-called "Buffet Tax;" and a paid family sick leave requirement. The vote was on a motion to recommit the underlying bill and report it back with the specified amendment; the House rejected the motion by a vote of 191 to 218. [House Vote 512, 9/18/14; Congressional Quarterly, 9/15/14; Congressional Quarterly, 6/11/14; Congressional Record, 9/18/14; Tierney press release, 5/6/14; CRS Summary of H.R. 1286, 3/20/13; Congressional Actions, H.R. 4]
2014: Schweikert Voted Against Blocking Inverted Domestic Corporations From Receiving Certain Charitable Giving Tax Credits And Deductions, And Against Extending Those Tax Benefits For Two Years Instead Of Making Them Permanent. In July 2014, Schweikert effectively voted against an amendment that, according to Congressional Quarterly, "would [have] extend[ed] the tax provisions [affected by the underlying bill] for two years, through December 2015. It also would [have] bar[red] the application of the tax benefits in the bill to inverted domestic corporations." According to a separate Congressional Quarterly article, the underlying bill "would make permanent a credit for corporations and small businesses that donate their food inventory and the rule allowing certain tax-free distributions from individual retirement accounts for charitable purposes. It would make permanent the increased amounts that taxpayers may deduct for the fair market value of contributing qualified real property for conservation purposes and reduce the excise tax rate on the net investment income of private foundations to 1 percent. It also would repeal the alternative rules that reduce the excise tax rate when qualifying charitable distributions exceed average historical levels. It would allow individuals that make charitable contributions after the close of the tax year through April 15, to elect to treat the contribution as having been made in the preceding tax year." The vote was on a motion to recommit the bill to the House Ways and Means Committee with instructions that it be reported back immediately with the specified amendment; the House rejected the motion by a vote of 185 to 227. [House Vote 431, 7/17/14; Congressional Quarterly, 7/17/14; Congressional Quarterly, 7/17/14; Congressional Actions, H.R. 4719]