Democratic lawmaker Rep. Richard E. Neal last week filed a bill that seeks to prevent American firms from relocating their headquarters in offshore territories in an attempt to reduce their tax liability.

It was the third time since 2002 that Mr Neal, who represents the 2nd Congressional District of Massachusetts, and who is a member of the tax writing House Ways and Means Committee, had tried to steer through the Corporate Patriot Enforcement Act.

According to Mr Neal, his bill would result in an additional $5 billion being collected by the US Treasury at a time when the budget is being stretched by an escalating defense budget and the cost of the Hurricane Katrina recovery operation.

"This legislation is designed to slam the door shut on a truly disgraceful corporate tax shelter," Neal said during a floor speech last week.

"Over the years, dozens of American companies have filed papers to trade in their U.S. corporate citizenship for citizenship in tax haven countries like Bermuda. By washing their hands of their U.S. citizenship, they are able to stop paying taxes on their foreign profits, draining more than $4 billion out of U.S. coffers," he added.

The bill is said to have bipartisan support, but has not been scheduled for a vote by the Republican leadership.

Neal has been a vociferous critic of President Bush's tax policy, arguing that the nation can ill-afford to give corporations tax handouts at a time when the US is spending billions of dollars on military operations in Afghanistan and Iraq.

"Our nation has never been deeper in debt. We need to take a sober look at our nation's finances, and this is an excellent place to start," he argued.