CNN Lou Dobbs Tonight - Transcript

CNN Lou Dobbs Tonight - Transcript
Friday, July 1, 2005

BREAK IN TRANSCRIPT

DOBBS: And Lisa, as you've just reported, these Congressman in the House will be hearing from their constituents up close and personal on this issue. It won't be simply a matter of administrative arm twisting. Lisa, thank you very much. Lisa Sylvester from Washington.

Turning now to the outrage that is building over billions of dollars the federal government is paying to offshore tax evaders. My next guest is working to block government contracts for U.S. companies that relocate overseas in order to avoid paying U.S. taxes.

Congresswoman Rosa DeLauro introduced legislation that would do just that. Amazingly it failed in the House of Representatives with strong opposition in both parties. Congresswoman Rosa Delauro joins us tonight from her home district New Haven, Connecticut. Congresswoman, good to have you here.

REP. ROSA DELAURO, (D) CONNECTICUT: Thank you very much, Lou. Good to be with you.

DOBBS: The legislation, it would have been a close battle were it not for what appears to be the defection of, what, 28 Democrats?

DELAURO: Well, we had about 86 percent of the Democrats who voted for it. There were about 91 percent of the Republicans who voted against it.

Lou, I would have loved to have had 100 percent of my colleagues, but I think one gets an experience -- this is not a Democratic or a Republican issue. I think there ought to be overwhelming support for this effort.

As you pointed out, these are industries that go offshore. They set up a shell corporation in order to diminish their tax obligation to the United States. And then they have the audacity to come back and to ask for taxpayer's dollars for federal contracts. And you know what, they get them. It's about $1.4 billion in contracts. And we lose about $5 billion in revenue every single year. That's an outrage.

DOBBS: Congresswoman, why would there be opposition to this? You said it's not a Republican or a Democratic issue. I think I agree with you, but for a different reason. Mainly from my perspective, because corporate America has such overwhelming influence on both parties. What is your reason?

DELAURO: Well, I think that there -- I think there were, you know -- there was heavy lobbying on this issue. There were about some 25 or 26 corporations who have gone offshore, you know, to dodge paying their taxes. And they were, you know, all over the Hill and calling people to, you know, to -- and there was a lot of misinformation.

They kept talking about the legislation was retroactive. It is not. It's prospective. And we have legislation that already exists. And it affects the Department of Homeland Security. And that ban is in place. This is -- we put good corporate citizens at risk and at a disadvantage because these corporations are -- look, they can go off as you know and do whatever they want. But they should not -- we should not be in the business of allowing them to have federal contracts. And as I say, I am going to continue at this.

DOBBS: Well, good for you.

DELAURO: And I wish that we did have 100 percent of my colleagues on the Democratic side. And certainly more than the 20 votes we had on the Republican side. The vote was 190-231, but we are going to continue at it. And I think if the American public understands this -- no one can really understand it -- but to understand the outrage of it, we will be able to pass this legislation as we should.

DOBBS: Congresswoman, we thank you for being with us. Congresswoman Delauro, thanks.

DELAURO: Thank you.

BREAK IN TRANSCRIPT

http://transcripts.cnn.com/TRANSCRIPTS/0507/01/ldt.01.html