Wed Apr 9, 5:51 AM ET
By MARY DALRYMPLE, AP Tax Writer
WASHINGTON - American companies that move their headquarters offshore to avoid paying taxes will be the target of a new television advertisement that questions their patriotism during a time when U.S. soldiers are fighting in Iraq (news - web sites).
The ad contrasts images of soldiers at war with a fictional corporate executive. "In the sands of Iraq, our soldiers risk their lives for our country," says the voiceover. "At the same time, big corporations are abandoning our country and setting up phony tax shelters in the sands of Bermuda."
A group of taxpayer and citizen organizations calling themselves The Bermuda Project are running the advertisements to pressure Congress to pass legislation to stop companies from moving to offshore tax havens.
In what's known as a "corporate inversion," a company sets up a shell headquarters in a tax haven such as Bermuda while keeping most operations and jobs in the United States, potentially saving millions of dollars in U.S. taxes on income from foreign sources.
The ads will run later this week in this area and in the districts of House Speaker J. Dennis Hastert, R-Ill., and House Majority Leader Tom DeLay, R-Texas. The group wants Republican leaders to bring the legislation before the House for debate.
"The message is about shared sacrifice," said columnist and author Arianna Huffington, one of the founders of The Bermuda Project. "They're really cheating America, and they're cheating every American taxpayer who plays by the rules.
Hastert spokesman John Feehery said Republican leaders plan to examine the corporate tax system to reduce companies' incentives to move overseas. "Our companies are unfairly discriminated against in U.S. taxes," he said.
The ads are paid for by Working Assets, a company that donates part of its profits from telecommunications services and credit cards to environmental, educational and human rights organizations
By MARY DALRYMPLE, AP Tax Writer
WASHINGTON - American companies that move their headquarters offshore to avoid paying taxes will be the target of a new television advertisement that questions their patriotism during a time when U.S. soldiers are fighting in Iraq (news - web sites).
The ad contrasts images of soldiers at war with a fictional corporate executive. "In the sands of Iraq, our soldiers risk their lives for our country," says the voiceover. "At the same time, big corporations are abandoning our country and setting up phony tax shelters in the sands of Bermuda."
A group of taxpayer and citizen organizations calling themselves The Bermuda Project are running the advertisements to pressure Congress to pass legislation to stop companies from moving to offshore tax havens.
In what's known as a "corporate inversion," a company sets up a shell headquarters in a tax haven such as Bermuda while keeping most operations and jobs in the United States, potentially saving millions of dollars in U.S. taxes on income from foreign sources.
The ads will run later this week in this area and in the districts of House Speaker J. Dennis Hastert, R-Ill., and House Majority Leader Tom DeLay, R-Texas. The group wants Republican leaders to bring the legislation before the House for debate.
"The message is about shared sacrifice," said columnist and author Arianna Huffington, one of the founders of The Bermuda Project. "They're really cheating America, and they're cheating every American taxpayer who plays by the rules.
Hastert spokesman John Feehery said Republican leaders plan to examine the corporate tax system to reduce companies' incentives to move overseas. "Our companies are unfairly discriminated against in U.S. taxes," he said.
The ads are paid for by Working Assets, a company that donates part of its profits from telecommunications services and credit cards to environmental, educational and human rights organizations
