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Brady Statement after Discussion with Administration Officials Regarding Section 385 Regulations

July 06, 2016

WASHINGTON, D.C. – Today, Ways and Means Chairman Kevin Brady (R-TX) released the following statement after meeting with Administration officials regarding the potential economic impact of the Administration’s proposed section 385 regulations.

“Ways and Means Republicans are working to improve our broken tax code so that more businesses invest in America and create jobs for people across our country. We have serious concerns about the economic impact of Treasury’s proposed section 385 regulations. Instead of preventing corporate inversion transactions, these regulations will actually discourage U.S. and international companies from investing in America and our workers. 

“Today we had an opportunity to have a frank discussion with Treasury about the negative consequences of the proposed regulations and about the Administration’s response to the American people’s extensive comments and concerns about this proposal. The proposed regulations as currently drafted would be a damaging disruption in well-settled law with far-reaching implications for common business financing practices. During our discussion, I made it clear that this is neither the time nor the place for such unilateral action from the Administration.

“In the days and months ahead, there must be a robust conversation among the Administration, the tax-writing committees, and affected stakeholders about the next steps in this process. We intend to continue to work with Treasury and the business community to protect American workers and their jobs. Ways and Means Members will consider all legislative options going forward.”