James Maloney: “In September, Stanley Works of New Britain, Connecticut, announced that it was closing its hardware manufacturing…”

“In September, Stanley Works of New Britain, Connecticut, announced that it was closing its hardware manufacturing facility and moving it to China. In February, Stanley Works announced that its board had approved a plan to modify its corporate structure to reincorporate in Bermuda. Last week, a shareholder vote approving this expatriation was effectively invalidated due to improper proxy procedures. A new shareholder vote will have to be scheduled. Corporate expatriates are former U.S. companies who set up paper headquarters in tax havens in order to avoid U.S. taxes. Stanley intends to use a third country with which we have a tax treaty in order to avoid virtually all U.S. taxes, including on products made and sold here in the United States. In fact, such expatriates continue to reside in the United States, take advantage of our education system, our public utility systems and, of course, our national defense. In this time of war, they are saying, Thank you but we aren't going to pay our fair share. This is outrageous. Congress must act expeditiously to close this loophole and stop this unpatriotic tax dodge. The gentleman from Massachusetts (Mr. Neal) and I have introduced legislation to do exactly that. I call on this House to take the appropriate action and pass this legislation promptly.”