Today, Senator Reverend Warnock introduced the Close the Round-Tripping Loophole Act, to close a tax loophole to make it harder for pharmaceutical companies to move profits to offshore accounts and pay lower taxes on American-sold products 

Senator Reverend Warnock: “We should not be giving tax breaks to major drug companies that exploit our laws to hide their profits”

Senator Wyden: “This kind of loophole is what makes middle-class workers whose taxes come out of every paycheck feel like they’re getting ripped off, and the fact is, they’re right” 

Senator Warner: “This bill puts a stop to one of the worst abuses in the tax code and restores some much-needed fairness for middle class families”

Senator Welch: “I’m proud to join my colleagues on this legislation to close this loophole and rein in corporate greed”

Washington, D.C. – Today, U.S. Senators Reverend Raphael Warnock (D-GA), Finance Committee Ranking Member Ron Wyden (D-OR), Mark Warner (D-VA), and Peter Welch (D-VT) introduced the Close the Round-Tripping Loophole Act, which closes a tax loophole regularly used by pharmaceutical companies to move profits offshore and pay significantly lower corporate tax rates. The corporate tax loophole was blessed by Washington Republicans and signed into law by President Trump in the 2017 Tax Cuts and Jobs Act. 

“We should not be giving tax breaks to major drug companies that exploit our laws to hide their profits,” said Senator Warnock. “This critical legislation provides a commonsense fix that helps lower our deficit while forcing Big Pharma to pay their fair share. I urge my colleagues to pass this bill as quickly as possible.”

“Big, profitable multinationals have been abusing this loophole for many years with the blessing of Trump and Republicans, who are now gearing up to give those corporations even bigger tax breaks in their massive budget bill,” said Senator Wyden. “I’ve spent years investigating Big Pharma’s many tax schemes, and round-tripping is one of their go-to dodges. This kind of loophole is what makes middle-class workers whose taxes come out of every paycheck feel like they’re getting ripped off, and the fact is, they’re right.”

“For too long, American corporations have been able to exploit loopholes that let them shift profits overseas and avoid paying their fair share in taxes – leaving hardworking Americans to pick up the tab,” Senator Warner said. “This bill puts a stop to one of the worst abuses in the tax code and restores some much-needed fairness for middle class families.”

“The ‘round-tripping’ loophole is just another way large corporations and Big Pharma have schemed to rip-off taxpayers and avoid paying their fair share. They’ve been getting away with this for years now—enough’s enough,” said Senator Welch. “I’m proud to join my colleagues on this legislation to close this loophole and rein in corporate greed.”

The Close the Round-Tripping Loophole Act closes a loophole that large corporations, especially pharmaceutical companies, have used to shift their profits offshore. This legislation would help ensure that companies pay U.S. corporate taxes on profits made in the United States by making it harder for corporations to shift this income to low-tax countries. No small businesses would be subject to these provisions. The proposal would only apply to corporations that average at least $100 million in annual revenue.

The introduction of the Close the Round-Tripping Loophole Act is Senator Warnock’s most recent effort to combat corporate greed and hold big pharmaceutical companies accountable. In August 2022, Senator Warnock introduced legislation to combat corporate greed and incentivize companies to lower prices at the pump for Georgians by raising taxes on oil and gas companies that utilized greedy practices. In February 2022, Senator Warnock successfully pushed to cap the cost of insulin and prescription drugs for seniors on Medicare.

Read the Close the Round-Tripping Loophole Act HERE

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