A US Senator yesterday attacked big corporations who moved to overseas tax havens to escape millions in taxes.

Sen. Max Baucus said legislation he was piloting would eliminate a loophole in the tax code which allowed the flight of tax dollars

His comments were made to the US Senate Finance Committee, which met yesterday to consider legislation to stop corporate inversions.

The committee postponed any action until next week, according to the Senate press office.

The matter came up for consideration yesterday - a bipartisan bill titled Reversing the Expatriation of Profits Offshore (REPO) Act <$>was tabled earlier in the year by chairman Max Baucus and ranking minority member Chuck Grassley - along with two other drafts of legislation including a charitable contributions measure and a tax shelter bill. The Baucus-Grassley bill - as with other bills tabled in Congress on the matter - would levy taxes on all income of US corporations that move offshore, including on foreign revenue. And the focus of these bills has largely been companies moving to Bermuda including much in the news Stanley Works.

In addition a tax-shelter bill, Tax Shelter Transparency Act<$>, and again authored by Sen. Baucus and Sen. Grassley was considered which would give the Internal Revenue Service (IRS) more leeway for investigations into questionable transactions.

The charitable contributions measure (CARE Act) <$>has been pushed by President George Bush. And the House approved its own charity bill last year although the idea has not been well-received in some sectors as it could cost an estimated $13 billion over ten years.

But the measure could gain favour from supporters of a crack down on corporate inversions if the bills are pushed through together.

Yesterday Sen. Baucus said before the Committee: “The REPO Act eliminates the loophole in the tax code that lets a corporation, with nothing more than a file folder or post office box in a tax haven country escape millions in US taxes. “It isn't right when the majority of taxpayers - the hardware store owners in Butte - pay their fair share of taxes while these big corporations twist their way out of paying their own fair share. This is simply wrong.

But it is the right thing to do to use these proposals to pay for tax incentives to benefit the charitable community. It is the right thing to do - and the right time to do it,” he said.

The Dow Jones newswire reported that although lawmakers had finished debate on the legislation, they put off a final vote because the required number of lawmakers needed to hold a vote weren't present.

Almost all of the debate focused on the charitable giving legislation. The Dow Jones also reported that even if the Senate panel and eventually the full Senate approve this legislation it is unlikely it will become law this year.

Many House Republicans reportedly do not support the corporate inversion or tax shelter proposals.