WASHINGTON - Democrats are accusing House Republicans of protecting US corporations that avoid paying taxes by setting up small offices offshore.

In the Democratic radio address aired Saturday morning, Rep. Jim

Maloney, D-Conn., said the number of corporations seeking tax havens is growing.

"For little more than the cost of a post office box in an offshore tax

haven like Bermuda, U.S. companies are avoiding many millions of dollars in federal taxes," he said

"Corporations that engage in this practice want the benefits of being an American company, but are not willing to pay their fair share. They

leave that to taxpayers like you and your neighbor."

Maloney said Republicans stood in the way of Democratic legislation this week, "leaving open the loophole that is allowing corporations to abandon their U.S. responsibilities."

"The Republicans had an opportunity to pass our legislation, but they didn't," Maloney said. "Instead, they canceled a vote on a very

important bill to speed up marriage penalty tax relief for millions of American families just because (they) learned that Democrats had submitted an amendment to close the Bermuda tax loophole."

House Republicans are beginning to rally around a measure by Rep. Nancy Johnson R-Conn., that would impose a one-year moratorium on the relocations while lawmakers work on a long-term fix.

"Congress could be bogged down in the complexity of this issue as we try to find an answer," Johnson said Friday.

Ingersoll-Rand Inc., Tyco International, Cooper Industries and The

Stanley

Works are among the high-profile companies that have nominally

reincorporated in Bermuda or are in the process of doing so. Stanley,

the

toolmaker longed based in Connecticut, has estimated the move will save it $30 million a year in taxes.

The Stanley move has emerged as a major issue in Johnson's re-election battle against Maloney in a redrawn district.

Of the Stanley move, Maloney said, "Connecticut has not seen an outrage like this since Benedict Arnold - the Connecticut traitor - sailed away."

"It is unpatriotic and immoral for companies to do this in time of war, when we have brave American men and women in harm's way. The people of America deserve better," he said.

The Bush administration suggested caution in changing the laws.

"I don't think anyone wants to wake up one morning to find every U.S. company headquartered offshore because our tax code drove them away and no one did anything about it," Treasury Secretary Paul O'Neill said in a written statement.