I am very pleased that the Select Revenue Measures Subcommittee is holding today’s hearing. Since the estate tax sunset bill was being considered before the House of Representatives at the same time as the Committee was receiving the June 6th testimony on this most important issue, it was appropriate that we postponed the full Committee hearing and resume today before this Subcommittee.

I welcome all of the Members of Congress appearing before the Subcommittee to discuss the legislation they have introduced to stop corporate inversion transactions. We must act on this legislation with great speed. The problem is clear and the solution is simple.

I have no sympathy for the argument that these "Benedict Arnold" companies are justified in their actions -- literally turning their back on this country because of problems they claim with our tax laws. No one should justify tax avoidance at a time of war by complaining about the laws. We have at least two concrete proposals to address this issue.

First, Congressman Neal has authored H.R. 3884, the "Corporate Patriot Enforcement Act," which is cosponsored by Congressman Maloney, and merits our particular attention. Their bill would address a real and growing problem of U.S. corporations avoiding taxes through paper re-incorporations overseas. The bill would raise $4 billion over ten years, and eliminate any tax benefits for companies that expatriated after September 11, 2001. Companies that expatriated before that date would be brought back into the U.S. tax system in two years.

Second, Congressman Doggett, has authored H.R. 4993, which also merits our serious attention. His bill would provide a backstop to the Neal bill by eliminating the ability of corporations to use U.S. tax treaties to strip earnings out of the U.S. for the purpose of eliminating tax. In such circumstances, the bill would limit the availability of tax benefits to treaty country residents.

Corporate executives may decide that "patriotism needs to take a back seat" to profits. I believe the Congress will take a different view. At a time when we are asking our Armed Forces to risk their lives in the war against terrorism, I find it contemptible that corporations would renounce their allegiance to this country in order to evade taxes. It is especially troubling that some of the expatriating corporations have profitable contracts with the Federal government.

The public expects us to act and to act now. Every dollar of tax evaded by corporations fleeing our borders must be paid by somebody else.

I want to thank you Mr. Chairman for holding this hearing and providing Members and interested parties with the opportunity to be heard. Thank you.