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Senate Votes To Stop Offshore Firms Winning Government Contracts

by Leroy Baker, Tax-News.com, New York

17 September 2004

The United States Senate has approved a measure that will block US firms headquartered offshore from bidding for Department of Homeland Security contracts.

The measure, an amendment to the $32 billion Homeland Security Bill, was adopted by the upper chamber in a voice vote.

The House version of the bill also seeks to prevent offshore-based firms from securing Homeland Security contracts.

Sen. Carl Levin, (D – Mich), who sponsored the amendment, argued that Congress should not “reward the tax haven games played by U.S. companies who want to enjoy US benefits without paying their fair share of US taxes."

However, the amendment will only apply to contracts tendered after the bill becomes law.

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