“The U.S. Treasury Department on Monday announced what it called its “first targeted steps” to make it harder for U.S. companies to reduce their tax bills by merging with foreign firms.
The process, known as inversion, has been all the rage in the corporate world this year.
Treasury can’t unilaterally change tax law — that’s the job of Congress.
But what the Obama administration did on Monday was issue tax guidance that will govern any inversion completed from today forward. It also imposed at least one new restriction that will affect companies that have recently inverted.
“These first, targeted steps make substantial progress in constraining the creative techniques used to avoid U.S. taxes, both in terms of meaningfully reducing the economic benefits of inversions after the fact and when possible stopping them altogether,” Treasury Secretary Jack Lew said.
The Adminstration is unAmerican and anti-Capitalist!
You mean we can’t have the American taxpayers subsidize the living expenses of our low wage workers and pay less taxes with record high profits?