WASHINGTON (AP) -- Democrats won an unexpected victory Friday night in their campaign-season effort against corporations that relocate their headquarters to tax havens such as Bermuda, often reducing their U.S. taxes by millions of dollars.
During consideration of the bill creating a new Homeland Security Department, Democrats used a parliamentary maneuver to attach language sponsored by Rep. Rosa DeLauro, D-Conn., barring the new agency from entering into contracts with publicly traded companies incorporated in 10 tax havens.
Republicans initially opposed the measure, but once it appeared likely to pass more than 100 lined up at the speaker's podium to switch their votes. After reaching 205 votes against at one point, the measure eventually passed by 318-110.
Although limited in scope, Democrats were gleeful about the vote, saying it presages more victories on the issue of corporate relocations to tax havens. The issue is one of several that Democrats are pushing ahead of the November elections to highlight corporate ethics and wrongdoing.
''This is a victory for patriotism and the American taxpayer,'' said Rep. Richard Neal, D-Mass. ''This is seismic. ... This issue is resonating across the country.''
The tax haven countries are: Bermuda, Barbados, the British Virgin Islands, Cayman Islands, the Bahamas, Cyprus, Gibraltar, the Isle of Man, Monaco and the Seychelles.
Stock of the companies barred from contracts must be mainly traded in the United States, and the president can waive the prohibition if the contract is needed for national security reasons.
