Corporations should not be able to dodge taxes by moving oversees, Rep. Sander Levin, D-Mich., told CNBC's "Closing Bell" Wednesday, a day after legislation to combat the issue was introduced in both houses of Congress.
"They can't just easily just renounce their citizenship, keep major activities here and essentially pay very low taxes in same tax haven," said Levin, a co-sponsor of the House bill. "Individuals can't really do that and I think the public thinks it isn't fair for corporations to do that."
It's a move that not only erodes the nation's tax base, but kills American jobs, he added.
The bill would restrict corporate tax inversions, where U.S. multinational companies typically merge with a foreign company and then restructure and relocate their tax domiciles to the lower-tax country.