DEAR SENATOR

Dear Mr. Hujsak:

Thank you for writing to express your support for the "Stop Corporate Inversions Act of 2015" (S.198).  Your correspondence is important to me, and I welcome the opportunity to respond. 

As you may know, on January 20, 2015, I joined 11 of my Senate colleagues to cosponsor legislation authored by Senator Richard Durbin (D-IL), the "Stop Corporate Inversions Act of 2015."  This bill would increase the required share of foreign ownership a corporation must have to move its tax headquarters overseas from the current 20 percent to 50 percent.  Furthermore, S.198 would mandate that merging companies continue to be treated as domestic companies for tax purposes if the management and control of the company remains in the U.S., or if a quarter of its employees, sales, or assets are still located in the U.S.  This legislation is currently awaiting consideration by the Senate Finance Committee, of which I am not a member.  Companion legislation (H.R.415) was introduced in the House of Representatives by Representative Sander Levin (D-MI).  

I share your concerns that Congress must do more to prevent companies from using tax loopholes to avoid paying their fair share of taxes and to help our economy by reviewing and simplifying the current tax code. The tax code, as it stands today, is enormously complex, with expensive deductions and loopholes that have been carved out over time by influential special interests.  The rate of corporate taxes as a share of the federal tax revenue has decreased from about 21 percent in the 1960s, to the current rate of 10 percent.  I support corporate tax reform that protects small businesses, supports job creation, and ensures that all corporations pay their fair share.  

Please know that I appreciate hearing of your support for the "Stop Corporate Inversions Act of 2015," and I will keep your thoughts in mind should this bill or similar legislation come before the full Senate for consideration.

Again, thank you for writing.  If you have any further questions or comments, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841.  Best regards.

Sincerely yours,


  Dianne Feinstein
         United States Senator

Note: Senator Feinstein replies at length to letters about different issues. In contrast, Senator Boxer
seldom replies, and when she does, it is a banal letter telling how well she is doing her job.