[Congressional Record Volume 148, Number 62 (Wednesday, May 15, 2002)]
[House]
[Page H2477]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         CORPORATE EXPATRIATION

  (Mr. MALONEY of Connecticut asked and was given permission to address 
the House for 1 minute.)
  Mr. MALONEY of Connecticut. Mr. Speaker, 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.

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