Duckworth, Durbin Help Introduce Legislation to Bring Transparency to Corporate Abuse of Tax Havens, Job Offshoring

Duckworth, Durbin Help Introduce Legislation to Bring Transparency to Corporate Abuse of Tax Havens, Job Offshoring

[WASHINGTON, D.C.] - U.S. Senator Tammy Duckworth and Senate Democratic Whip Dick Durbin joined U.S. Senator Chris Van Hollen (D-MD) in reintroducing the Disclosure of Tax Havens and Offshoring Act, legislation to provide transparency around corporations' use of tax havens and incentives to jobs. This offshore bill would require public companies to disclose their financial reporting on a country-by-country basis. Ensuring public access to this information would both provide investors the tools they need to understand the tax structures and risks of the businesses in which they invest and give Americans insight into the extent to which the tax system is incentivizing the outsourcing of American jobs or enabling corporations to dodge U.S. taxes.

"Corporations have long abused offshore loopholes to avoid paying their fair share in taxes and move their profits overseas-and jobs along with it," said Senator Duckworth. "Consumers deserve to know if the companies they're buying from are outsourcing American jobs to other countries and dodging American taxes. It's long past time that we pass our commonsense legislation to help deliver transparency and hold these corporations accountable."

"For too long, many of the world's most profitable corporations have taken advantage of foreign tax havens to skirt paying their fair share here in the U.S. And it only became easier when Republicans passed their tax plan, which was chockfull of new incentives for corporations to ship profits and jobs overseas," said Senator Durbin. "We cannot let this go unnoticed. With the Disclosure of Tax Havens and Offshoring Act, we can finally hold these corporations accountable."

While the Tax Cuts and Jobs Act established a new global tax framework, it also introduced incentives for large U.S. companies to shift profits and jobs overseas. The One, Big, Beautiful Bill Act largely preserved those incentives. New research shows that in 2025, large corporations reduced their tax liability by more than $11 billion through the use of tax havens. Firms continue to benefit from shifting profits because they can pool income and foreign taxes across affiliates in both high- and low-tax countries, while foreign income remains subject to a significantly lower U.S. tax rate than domestic income.

The Disclosure of Tax Havens and Offshoring Act would ensure there is more transparency in these tax practices by requiring large corporations to disclose basic information on each of their subsidiaries and country-by-country financial information that sums together all of their subsidiaries in each country-including profits, taxes, employees and tangible assets.

All of this information is already reported to the Internal Revenue Service, under an international Organization for Economic Co-operation and Development framework, but this legislation would ensure public disclosure to provide data on how international tax laws are working and where corporations are locating their business activities and taxes. Thus, when a corporation sends jobs overseas, their country-by-country financial report would show the extent to which the U.S. tax system is rewarding their behavior.

Along with Duckworth, Durbin and Van Hollen, this legislation was co-sponsored by U.S. Senators Bernie Sanders (I-VT), Sheldon Whitehouse (D-RI), Richard Blumenthal (D-CT), Tammy Baldwin (D-WI), Elizabeth Warren (D-MA), Tina Smith (D-MN) and Peter Welch (D-VT).

This legislation is supported by the Financial Accountability & Corporate Transparency (FACT) Coalition, Public Citizen, Institute for Taxation and Economic Policy and the American Federation of State, County and Municipal Employees (AFSCME).

A one-page summary of this bill is on Senator Van Hollen's website and full text of the legislation is available on Senator Duckworth's website.

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