Transfer pricing is a serious issue that has emerged over time to pose a challenge to the enforcement of United States tax laws.

According to reports and media stories, multi-national companies are potentially gaming the current system to shift assets and funding within foreign-based entities to avoid paying U.S. taxes.

If companies are moving money overseas, they are moving jobs overseas precisely at a time when we must be using the U.S. tax code to promote job creation and strengthen economic security for workers and businesses here in America.

The Ways and Means Committee has requested the non-partisan Joint Committee to conduct a study of the issue and determine if transfer pricing poses a serious problem to our international tax laws, and if so, the scope of that problem.

Today’s hearing will not focus on specific proposals to address the issue, but will help give Members of this panel and interested parties a better understanding of the mechanics of transfer pricing and how big an issue this is for the Federal government.

I would now like to allocate the rest of my opening statement to Mr. Neal and Mr. Doggett, whose interest and work on this issue helped bring about this hearing.