WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded a proposal by U.S. Senator Ron Wyden, Chairman of the Senate Finance Committee, that would eliminate tax breaks for Russian oligarchs and bar companies from claiming foreign tax credits for levies paid to Russia and Belarus. Last month, CPA called for trade and financial sanctions on Russia to hamper its ability to wage war.
“In response to Putin’s invasion of Ukraine, Congress and the Biden administration should implement strong, widespread sanctions on Russia, including immediate revocation of Russia’s permanent normalized trade status (PNTR) and the blocking of Russia’s access to U.S. dollars,” said Zach Mottl, Chairman of CPA. “Chairman Wyden’s proposal is exactly the kind of strong response that Congress must pass immediately to ensure Russia is not benefitting from its access to the U.S. economy.”
CPA strongly supports the following provisions in Chairman Wyden’s proposal:
The proposed denial Foreign Tax Credits to Russian Oligarchs.
- The United States can withdraw from the U.S.-Russian Tax Treaty denying the reduction of taxes that could allow a greater flow of funds to Russia.
Ending preferential tax treatments for any country that assists Russia in the invasion of Ukraine.
The proposed restriction of Foreign Tax Credits for multinational companies that continue to operate in Russia.
- It is important to restrict the U.S.-provided benefits that feed Putin’s war machine. We call for the recognition of a new category of state similar to the “state sponsor of terror list.”
- Any state actor that destabilizes our allies by invasion or the threats thereof. Such states do not deserve Foreign Tax Credits or preferential tax treatment.
The inclusion of people, entities, and states who have assisted the invasion of Ukraine listed by the Office of Financial Assets Control.
- CPA calls for an increase in transparency to ensure that these groups cannot evade these sanctions by using anonymous or secretive investing techniques.
- For example, U.S. investment advisers and private investment vehicles should be provided clear and consistent due diligence requirements they can follow to ensure they make the best efforts to avoid providing service and access to U.S. markets for these problematic groups.