A Democratic bill with 20 Democratic cosponsors · See all 20 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The "No Tax Breaks for Outsourcing Act" aims to amend the Internal Revenue Code of 1986 regarding international taxation. It changes the treatment of net CFC tested income to be included in the current year. The bill introduces country-by-country applications for foreign tax credits and limits interest deductions for domestic corporations in international financial reporting groups. Additionally, it modifies rules for inverted corporations and establishes that certain foreign corporations managed and controlled in the United States are treated as domestic corporations.
Yes
- Scored +6
Does this raise the taxes companies pay?
The bill increases taxes on corporations by redefining net CFC tested income, limiting interest deductions, and expanding the definition of domestic corporations for tax purposes.
- Scored +3
Does this make the government pay for what it commits to?
The bill increases federal revenue through stricter international taxation rules and closing loopholes for inverted corporations.
- Scored +2
Would union members be better off under this?
The bill targets corporate outsourcing and tax avoidance, which can indirectly support domestic labor stability.
The opposite
- Scored -5
Would high-income households be better off under this?
The bill targets large corporations and international financial groups which are often associated with high-income economic interests.
- Scored -4
Would business owners be better off under this?
The bill imposes new restrictions on interest deductions and expands the definition of domestic corporations for large business entities.
Who it would affect, and how
Potential Positive Impacts for People
-
Redefining Net CFC Tested Income: The bill repeals the tax-free deemed return on investments by striking "global intangible low-taxed income" and replacing it with "net CFC tested income" (Section 2(a)).
-
Country-by-Country Tax Application: The bill implements a system where net CFC tested income and other items are determined separately for each country where a taxable unit is a resident or located (Section 2(b)).
-
Enhanced Regulatory Authority: The Secretary is granted authority to issue regulations to prevent the avoidance of the purposes of the section, including adjustments to basis and tax attributes (Section 2(c)).
-
Addressing Inverted Corporations: The bill modifies rules so that foreign corporations are treated as domestic if they acquire substantially all assets of a domestic corporation or partnership and have management and control occurring primarily within the United States (Section 5(a)).
Potential Negative Impacts for People
-
Limitations on Interest Deductions: Domestic corporations that are members of an international financial reporting group will face limits on their deductions for interest paid or accrued (Section 4(a)).
-
Restrictions on Inverted Corporations: The bill expands the definition of an "inverted domestic corporation," treating more foreign corporations as domestic if their management and control occurs primarily within the United States (Section 5(a)).
-
Treatment of Managed Foreign Corporations: Certain foreign corporations that are regularly traded or have significant assets, and are managed and controlled primarily within the United States, will be treated as domestic corporations for income tax purposes (Section 6(a)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Economy And Finance
- Does this raise the taxes companies pay? — The bill increases taxes on corporations by redefining net CFC tested income, limiting interest deductions, and expanding the definition of domestic corporations for tax purposes. Does this make the government pay for what it commits to? — The bill increases federal revenue through stricter international taxation rules and closing loopholes for inverted corporations.
- Demographic And Interest Groups
- Would union members be better off under this? — The bill targets corporate outsourcing and tax avoidance, which can indirectly support domestic labor stability. Would high-income households be better off under this? — The bill targets large corporations and international financial groups which are often associated with high-income economic interests. Would business owners be better off under this? — The bill imposes new restrictions on interest deductions and expands the definition of domestic corporations for large business entities.
- 6/9/2026
- 1 Cosponsor added.
- 4/1/2025
- 1 Cosponsor added.
- 2/24/2025
- 1 Cosponsor added.
- 2/5/2025
- Read twice and referred to the Committee on Finance.
- 17 Cosponsors added.
- Introduced in Senate
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Tammy BaldwinDemocrat · Wisconsin
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Richard DurbinDemocrat · Illinois
Tammy DuckworthDemocrat · Illinois
John FettermanDemocrat · Pennsylvania
Ruben GallegoDemocrat · Arizona
Mazie HironoDemocrat · Hawaii
Martin HeinrichDemocrat · New Mexico
Ben LujánDemocrat · New Mexico
Edward MarkeyDemocrat · Massachusetts
Christopher MurphyDemocrat · Connecticut
Jeff MerkleyDemocrat · Oregon
John ReedDemocrat · Rhode Island
Adam SchiffDemocrat · California
Brian SchatzDemocrat · Hawaii
Tina SmithDemocrat · Minnesota
Chris Van HollenDemocrat · Maryland
Peter WelchDemocrat · Vermont
Elizabeth WarrenDemocrat · Massachusetts