Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and John Cornyn (R-Tex.) introduced bipartisan legislation to prevent businesses from claiming a foreign tax credit or deduction against taxes paid to fund the Russian government’s war machine. Currently, businesses paying taxes in foreign countries are eligible to claim a tax credit or deduction in the United States to reduce the burden of double taxation. There are certain hostile countries to which this tax credit does not apply, including North Korea and Iran, and Cortez Masto’s HONOR Act would add Russia to that list.
In September 2023, Russia President Vladimir Putin illegally suspended the U.S-Russia Tax Treaty. Following a letter from Senators Cortez Masto and Cornyn, the United States Department of the Treasury retaliated by suspending benefits for Russian businesses and investors. The HONOR Act would take this suspension one step further and prevent businesses funding Putin’s illegal war in Ukraine from receiving tax breaks in the United States. This bill would ensure U.S. taxpayers are not subsidizing Putin’s oppressive government.
“We should not be giving tax breaks to businesses that are funding the Putin regime. It’s that simple,” said Senator Cortez Masto. “This bipartisan legislation expands upon current Treasury Department policy, holds Russia accountable for its criminal activity in Ukraine, and protects American national security.”
“Businesses that continue to engage with Russia are enriching Putin’s oppressive regime,” said Senator Cornyn. “This commonsense bill would force these businesses to give up their foreign tax credits and deductions for taxes paid to Russia, which subsidize the Russian war apparatus.”
Senator Cortez Masto has consistently advocated for the U.S. to stand up to Russian aggression and support Ukrainian sovereignty. She has voted to pass bipartisan legislation to support Ukraine and helped pass bipartisan economic sanctions that were signed into law to hold Russia accountable for its illegal invasion of Ukraine. She voted in support of sanctions against Russia and its Nord Stream 2 pipeline, and she supported similar sanctions in the 2020 and 2021 National Defense Authorization Acts.
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