There was no sign of relief yesterday in the American media of jabbing at US corporations that move offshore with the latest attack - and a continued focus on Bermuda - coming in a Newsweek column due out in the April 15 issue.

Newsweek Wall Street editor Allan Sloan, in a column - in a weekly magazine that reaches about 3.8 million people according to 2001 circulation figures - for the upcoming issue is titled "The Tax-Free Bermuda Getaway: Corporate America has a gift for finding loopholes. They're legal, but that doesn't make them right".

The column follows the introduction of several bills in the House of Representatives by Rep. Richard Neal and Rep. Scott McInnis and heated discourse in the US Senate from Sen. Paul Wellstone, Sen. John Kerry and Sen. Charles Grassley, on corporations that move out of the US in order to slash their tax bills.

The bills being proposed would change the US tax code and levy taxes on all income - including foreign revenues and sales - earned by American corporations that reincorporate outside of the US. The debate has largely focused on Bermuda-based companies such as Tyco, Global Crossing, Ingersoll-Rand, and companies which have not yet "redomesticated" to Bermuda include Stanley Works and Cooper Industries.

Media reports and American legislators are increasingly branding these corporations as "unpatriotic" for reincorporating overseas.

In a statement last month before a US Finance Committee hearing on tax shelters and inversions, Iowa Senator Grassley said: "While the vast majority of taxpayers and their advisors attempt to comply with the letter and spirit of the law, the complexity of the current tax system provides too many opportunities for tax payers to participate in transactions that generate tax benefits never intended by Congress," he said.

He continued: "The best way to eliminate these practices is to simplify the tax law and improve transparency so that questionable transactions are disclosed and subject to IRS review."

As US legislators look at changes to the existing tax code, a number of US corporations are moving ahead on their plans to move incorporation to the Island.

These include Stanley Works and Cooper Industries which announced last Friday that the shareholder vote on its plans to reincorporate to Bermuda will be held on May 14.

Stanley Works shareholder vote is scheduled for May 9. Mr. Sloan in his column writes: "Stanley says the move will cut its US income tax bill to about $50 million from $80 million. Shareholders will vote on the relocation, I hope they vote it down, but I won't hold my breath."

He continued: "It would be one thing if Stanley were the only company doing this. But its become a beach party. Four other sizeable companies - Cooper Industries, Ingersoll-Rand, Foster Wheeler and Nabors Industries - have moved to Bermuda recently or are in the process of doing so.

"Dozens more are waiting in the wings with their towels and sunscreen. The trend feeds on itself. Even if a company thinks moving is tacky and unpatriotic, it has to start thinking of heading to Bermuda if its competitors do," Mr. Sloan concluded.

There is however at least one US Senator who is speaking out in favour of maintaining tax competition. Idaho Senator Michael Crapo, who serves on the Senate Banking Committee and Joint Economic Committee has spoken out against the "dangers" of what is bad tax policy and bad foreign policy.

But Washington economists have warned there is a threat of tax legislation that would adversely affect certain Bermuda corporations being put in place.

Andrew Quinlan, of the Center for Freedom and Prosperity, said last week that his organisation is stepping up its efforts to meet with US lawmakers: "Statist lawmakers in Washington are pursuing legislation to punish businesses that relocated in jurisdictions with more rational tax laws.

"Over the next several weeks, the CFP will be leading an effort to educate members of congress on the need to reform the US tax code rather than passing protectionist legislation."