Lawmakers ratcheted up the pressure yesterday on companies seeking tax relief by moving overseas, introducing a bill that would withhold government contracts from companies that undertake so-called inversion deals, the New York Times DealBook blog reported yesterday. The No Federal Contracts for Corporate Deserters Act — introduced by four Democrats, Sens. Richard Durbin (Ill.) and Carl Levin (Mich.), and Reps. Rosa DeLauro (Conn.) and Lloyd Doggett (Texas) — seeks to discourage companies from reincorporating abroad by threatening to withhold federal dollars from the offending companies. The proposed bill would also allow federal agencies to stop doing business with companies if they subcontract with inverted corporations, potentially widening the scope of those affected.
