As the political landscape heats up with the upcoming Senate race, former Senator John Sununu’s legislative record on corporate tax shelters has come under scrutiny. Notably, his past votes appear to favor large corporations, raising questions about his stance on tax practices and corporate accountability.
Sununu, who served New Hampshire in the U.S. House from 1997 to 2003 and in the Senate from 2003 to 2009, is attempting a return to the Senate. During his tenure, he consistently voted in favor of policies that allowed corporations to exploit tax shelters, which are financial arrangements designed to reduce tax liabilities. While some of these shelters are legal, others skirt the line of tax evasion.
Abusive practices in this context include strategies such as shifting profits to low-tax regions like Bermuda or creating fictitious financial losses to reduce tax obligations. In 2002, Sununu opposed two legislative efforts aimed at curbing such practices. One bill sought to prevent companies moving profits offshore from securing Homeland Security contracts, while another proposed penalties for failing to repatriate profits.
His opposition drew criticism from Massachusetts Rep. Richie Neal, who accused Sununu of favoring Bermudian businesses over those in his home state of New Hampshire. In 2004, Sununu was among a minority of five senators who voted against the JOBS Act, which aimed to tighten regulations on tax shelters and enhance transparency and enforcement.
Although the JOBS Act did not pass, the American Jobs Creation Act later incorporated some of its less stringent measures. Following his Senate tenure, Sununu joined several corporate boards, including that of Afiniti, a company incorporated in Bermuda but operating mainly from Washington, D.C.
Earlier this year, Sununu faced a minor controversy for omitting his role on the board of BlueRiver Acquisition from financial disclosures. Despite his campaign’s claim of no income or profit from BlueRiver, the company, incorporated in the Cayman Islands—a notorious tax haven—reported Sununu’s ownership of 30,000 shares.
Sununu is currently competing against Rep. Chris Pappas, who, according to a New York Times/Siena University poll, holds a five-point lead over him. The debate over Sununu’s past votes on tax shelters and corporate transparency adds a contentious layer to an already competitive race.
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