Tax inversions set off alarm bells


The Obama administration is calling for new legislation that will limit the benefits for U.S. companies to reincorporate overseas for tax benefits.

In the last decade, 50 U.S. firms have relocated for tax inversions.

As a result, Treasury Secretary Jacob Lew has written to congressional tax-writing committees stating lawmakers "should enact legislation immediately…to shut down this abuse of our tax system."

Authorities are still hopeful that a comprehensive tax rewrite can also limit inversions on a retroactive basis.

Comments (7)
  • chopchop0
    , contributor
    Comments (4897) | Send Message
     
    Maybe Obama can actually reform the corporate tax system in this country first.... Not holding my breath though
    16 Jul 2014, 07:00 AM Reply Like
  • bdarken
    , contributor
    Comments (621) | Send Message
     
    Spending is the problem.
    Not taxes.
    16 Jul 2014, 07:04 AM Reply Like
  • june1234
    , contributor
    Comments (4051) | Send Message
     
    Corporate lobbyists won't put up with that nonsense thats for sure. Too bad they always seem to make these proposals during an election cycle. It was after all the US gov.(with an assist from lobbyists Im sure) who passed all those tax breaks to encourage US corps to move operations overseas in the first place. Good luck
    16 Jul 2014, 07:16 AM Reply Like
  • richin10
    , contributor
    Comments (96) | Send Message
     
    You've got it backwards - companies AREN'T moving due to tax breaks -they're moving BECAUSE of high taxes.

     

    How can one read American corporate tax @ 35% and Irish corporate tax @ 12.5% and call it a tax break? It's moving to a lower tax location. If I move from California to Florida, it's not a tax break, I am moving to where the taxes themselves are lower.
    16 Jul 2014, 09:23 AM Reply Like
  • PeteCal
    , contributor
    Comments (90) | Send Message
     
    Let's see. Do we look at what we are doing wrong to drive companies to leave the country? No we want to make it more difficult. Which of course just promotes more moves.

     

    Does anybody seriously think lawmakers can out think companies?
    16 Jul 2014, 08:46 AM Reply Like
  • june1234
    , contributor
    Comments (4051) | Send Message
     
    I know they can't pay workers in the states $400 a month to make I Phones like they can in China. Mexicans won't do it for that(no racial insult meant).
    16 Jul 2014, 08:55 AM Reply Like
  • taxman100
    , contributor
    Comments (497) | Send Message
     
    they can afford to move overseas, since our trade treaties have surrendered our national sovereignty to a bunch of unelected international organizations. What negative business results do they experience by doing so that negates any tax savings?

     

    If companies had to pay duties and tariffs to import goods and services, they would reconsider moving jobs out of the country. Ronald Reagan understood the usefulness of these when used correctly. Too bad our current leadership in all branches of government no longer represent the American people.
    16 Jul 2014, 09:45 AM Reply Like
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