October 31,2019

Grassley Supports Treasury’s Move to Continue Protecting American Tax Base, Prevent Unintended Tax Dodging

Washington – Senate Finance Committee Chairman Chuck Grassley (R-Iowa) issued the following statement regarding the advance notice of proposed rulemaking released by the Treasury Department.

“The 2017 tax reform bill, with a reduced corporate tax rate and enhanced tax base-protections, has worked to substantially reduce the incentives for American companies to relocate offshore and has encouraged companies to come back to the United States. The Obama inversion regulations under Section 385 were released in a tax environment where the United States had the highest corporate income tax rate among our major trading partners. It makes sense in today’s tax environment for Treasury to reconsider those regulations, scaling back portions of them as appropriate (TD 9880) while indicating Treasury’s intent to issue rules to prevent unintended tax planning. With today’s notice (REG-123112-19), Treasury is signaling its willingness to work with the business community to strike the right balance in rules that protect the tax base and prevent unintended tax dodging. I’ll be following Treasury’s actions closely and encourage taxpayers to weigh in on this guidance.”