Tax inversion law can be passed without congressional approval

|By:, SA News Editor

President Obama could act without congressional approval to reduce key incentives which allow U.S. corporations to complete tax inversions, says Stephen Shay, a former senior U.S. Treasury Department official.

According to Shay, Obama can invoke a 1969 tax law to bypass congressional gridlock and restrict foreign tax-domiciled U.S companies from using inter-company loans and interest deductions to cut their U.S. tax bills.

The recent rise of inversion deals is setting off alarm bells in Washington, and triggered Obama to urge lawmakers last week to act on anti-inversion proposals from him and other Democrats.