Eleven Democratic Senators are backing legislation, dubbed the Disclosure of Tax Havens and Offshoring Act, intended to provide transparency around corporations’ use of tax havens and incentives to offshore jobs. The bill would require public companies to disclose their financial reporting on a country-by-country basis. Supporters of the bill say that ensuring public access to such information would provide investors the tools they need to understand the tax structures and risks of the businesses in which they invest. Under current law, a U.S. corporation may use foreign tax credits to reduce U.S. tax liability on foreign profits.
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