Inversions: Senate Democrats Urge Obama to Take Action
A trio of liberal Senate Democrats want President Barack Obama to make use of his “pen and phone” to cut down on corporate “inversions.”
In a new letter, Sens. Richard J. Durbin of Illinois, Jack Reed of Rhode Island and Elizabeth Warren of Massachusetts seek executive action to reduce or eliminate tax preferences that come along with the business practice, in which a U.S. company will acquire an overseas company and then be based in the foreign country, at least on paper. The practice has increased in popularity as a tax-avoidance strategy.
“We have introduced … the Stop Corporate Inversions Act, and are working with our colleagues in Congress to pass legislation as soon as possible to eliminate tax breaks for inverted corporations, including closing the inversion-acquisition loophole,” the senators wrote. “However, our efforts should not preclude executive action to prevent corporate inversions. The coming flood of corporate inversions justifies immediate executive action.”
via Inversions: Senate Democrats Urge Obama to Take Action.
