Senate Dem seeks more Treasury action on offshore deals

Sen. Bob CaseyBob CaseyGreat Lakes senators seek boost for maritime system Help individuals with disabilities achieve the American Dream with the ABLE to Work Act A dozen senators call for crackdown on Chinese steel MORE (D-Pa.) is pushing the Treasury Department to take a more active role in battling offshore tax deals that allow corporations to cut their tax bill.

Casey, a member of the tax-writing Finance Committee, asked Treasury Secretary Jack LewJack LewWyden seeks IRS info on firms linked to Panama Papers Treasury issues rules cracking down on offshore tax deals Overnight Finance: Jobless claims near record low | Cops bust IRS phone scam in India | Republican demands Iran sanctions docs MORE in a letter what the Obama administration could do to stop the cross-border deals known as inversions without legislation.

President Obama and Lew have been pressing Congress to act on a measure that would essentially bar U.S. companies from buying a smaller foreign competitor to change their address and pay less in taxes.

Casey said in his letter to Lew that he still thinks that dealing with inversions through tax reform is the best path, but the recent rash of offshore deals has him “considering the merits of short-term solutions.”

The Pennsylvania Democrat specifically pressed the department on how much revenue the U.S. is losing from inversion deals, if the administration can better enforce existing rules, and how easy it would be to skirt the new proposed rules.

“The increasing trend of corporate inversions is troubling. Companies that are genuinely headquartered in the U.S. should be responsible for paying their fair share,” Casey said in a statement.

“I’m urging the Treasury Department to look at all available steps to combat inversions so businesses that are playing by the rules can compete on a level playing field.”

Democrats also fully acknowledge that their efforts against the offshore tax deals fit with their populist economic message this election year. Lawmakers in the party have already introduced legislation to stop inversions, and to stop companies that move offshore from getting federal contracts.

Sen. Chuck SchumerCharles SchumerImmigration was barely covered in the debates GOP leaders advise members to proceed with caution on Trump Senate Dems demand answers from Wells Fargo over treatment of military MORE (D-N.Y.) is also planning to introduce legislation that would concentrate on tax breaks that companies can continue to take after they reincorporate abroad.

Republicans generally say that any targeted proposal would be ineffective, because it doesn’t tackle the overriding problem — the high corporate tax rate in the U.S. 

A former senior Treasury official under Obama said in recent days that the administration has more executive authority than it’s using to combat the deals. But administration officials continue to press Congress for legislative action.