Tell Congress that you oppose tax benefits for business operations in Russia and Belarus because they are “invading and destabilizing nations.” American-made companies are the core of our economic and military strength, and their production runs consistently with American values. Meanwhile, some multinational companies continue to operate in Russia, contrary to U.S. interests and norms. So why should they get tax credits as a subsidy for paying the Russian taxes?

Suppose these “Foreign Tax Credits” must exist. In that case, they should be reserved for America’s allies or at least for countries not bent on invasion, destabilization, and committing humanitarian atrocities.

Traditionally, the U.S. gives foreign tax credits for taxes paid by companies operating in foreign jurisdictions. This subsidy exists because we have not yet embraced Sales Factor Apportionment. So, we “have to” offer other countries a “first bite” at multinational profits based on the old tax rules. Our Treasury is legally obligated to give a tax reimbursement to global companies on taxes paid to Russia and Belarus.

But this free trade tax subsidy should be denied to any country that invades our allies, destabilizes a region, or commits humanitarian atrocities. 

Congress is considering bipartisan legislation right now as Senator Wyden and Senator Portman introduced draft legislation.

This legislation denies foreign tax credits to companies operating in Russia and paying Russian taxes. It also denies these multinational companies the ability to get internationally-based tax deductions from Russian and Belarussian taxes.

American businesses need to show their support for solid American values. Russia and Belarus should be labeled “invading and destabilizing nations.” That label should deny these tax benefits for business operations in those countries.

Let’s not finance both sides of the Russian invasion of Ukraine. Sign your name to this petition!