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Democrats wrong on Doheny's tax-break stance


In the interest of digestibility, I'm breaking down my fact-check into sections, which will be parceled out throughout the week. If you want to take on the whole thing at once, find it here.
Tax breaks for outsourcers
The state Democratic Party has been misleading voters about Republican Matt Doheny's tax position ever since he ran for Congress. They're doing it again in his rematch against Rep. Bill Owens, D-Plattsburgh, which takes place on Nov. 6.
Fliers from the state Democratic Party claim that Mr. Doheny supports keeping tax breaks for companies that ship good-paying jobs overseas.
That is unequivocally false.
Rich Horner, the state Democratic Party's executive director, did not respond to messages requesting comment. But a footnote shows that the claim is based on the Americans for Tax Reform pledge.
Mr. Doheny is one of many Republicans who signed the pledge. By signing the pledge, the candidate agrees not to support increases in the marginal tax rate for the income tax. But signers can support ending tax breaks for businesses. Here's how: When a tax break is ended, the government will ostensibly take in more money, at least in the short term. But instead of putting that extra money in the budget, the candidate has to support using the added revenue to drive down tax rates.
And that's exactly Mr. Doheny's position. Specifically, Mr. Doheny said he supports eliminating a company's ability to deduct from its taxes the cost of moving people or machinery overseas. It's literally a tax break to move jobs overseas.
“By removing that deduction, you could reduce the actual (corporate tax) rate,” Mr. Doheny said. “That's how we're going to make America competitive.”
Mr. Owens also supports eliminating that tax break. Mr. Owens said he'd go a step further, by providing tax breaks to companies that bring jobs back from overseas to the United States. A Harvard economist questioned the wisdom of that move in a Boston Globe editorial, and Mr. Doheny shared the concerns — specifically, a company could end up getting a tax-break windfall with a few accounting maneuvers to make it seem like it's bringing jobs back to the United States. Mr. Owens said that strict controls could help avoid that.
So Mr. Doheny can and does support eliminating tax loopholes for companies that ship their jobs overseas, just like his opponent, Mr. Owens. Mr. Dohney is able to do so even while staying true to the Americans for Tax Reform pledge.

The false flier:
Doheny Flamingo Flier

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