Congressmen John Hall of the 19th district has taken the first step to repeal the Reverse Morris Trust and stop sales of Telcom landlines using a no-money down scheme.  Below is an email from the Congressmen in response the National Union E-mail campaign.  After reading Hall's letter you can send him a message asking him to continue the fight against this tax loophole that negatively affects CWA telcom workers by clicking the link below:

http://www.unionvoice.org/campaign/hr4213cwa

Thank you for contacting me about Reverse Morris Trusts.  I appreciate hearing your thoughts on this issue.

  A Reverse Morris Trust (RMT) is a loophole in federal tax law that essentially allows a tax-free merger of two companies. The loophole was infamously exploited by Verizon a few years ago in New England. By selling off their $1.7 billion of landline communications to another company, Fairpoint, while retaining a majority of shares, Verizon essentially rid themselves of unprofitable assets, and left a local company and workers in the lurch, all without paying taxes on the transaction.

 I believe the RMT loophole gives corporations a blank check to behave irresponsibly, hurting workers while avoiding paying their fair share of taxes. With the unemployment rate still too high and our economic recovery still fragile, we simply cannot afford to allow such reckless behavior. For these reasons, I recently voted for H.R. 4849, the Small Business and Infrastructure Jobs Tax Act. In addition to providing tax relief to small businesses and extending effective financing measures to create jobs and improve America's cities and towns, this legislation closes the RMT loophole. 

 H.R. 4849 passed the House on March 24, 2010 with my support. The bill is currently under consideration in the Senate. Please be assured I will keep you thoughts in mind as Congress considers legislation to protect American jobs.

 Again, thank you for sharing your concerns.  If I can assist in any other way, please do not hesitate to contact me.

Sincerely,

John Hall
Member of Congress