Caterpillar will testify at a Senate subcommittee hearing Tuesday, arguing against accusations of tax avoidance. According to a MarketWatch report, the company is expected to have Republican support on the issue.
The Senate’s Permanent Subcommittee on Investigations will hold the hearing to determine whether the company moved profits outside the country to avoid paying U.S. taxes. The chairman of the panel, Sen. Carl Levin, a Michigan Democrat, is taking the lead on the report on Caterpillar’s tax practices, while Arizona Republican Sen. John McCain, the ranking minority member on the subcommittee, is said to be “distancing himself” from the accusations, the MarketWatch report says.
The company is expected to argue that its tax payments are higher than the national average among large U.S. corporations.