Although efforts to stop companies that reincorporate outside of Bermuda from getting government contracts was voted down in the US Congress this week, Democratic party leaders have vowed to keep pushing for the measure.

The House of Representatives stripped the offshore tax item, with a voice vote, from the $35.1 billion spending bill for Treasury and Postal agencies, according to international news reports.

The measure would have denied certain government contracts to companies that have performed the so called "corporate inversions" or companies that have moved their headquarters to Bermuda or other countries to cut slash their US tax bills.

An aide to Rep. Richard Neal, who has been one of the most vocal opponents of the growing trend, said this week that Democrats intend to insert similar amendments into other bills coming before the House this week.

Meanwhile, House Rules Committee Chairman David Dreier last week defended the decision to eliminate the provision, and said the House Ways and Means Committee is considering a broader bill to address the problem.