Legislation Aims to Keep Firms From Leaving U.S. for Tax Savings
21st May 2014
I guess cutting taxes so that firms won’t have a big incentive to leave isn’t an option.
Congressional aides, lawyers and other advisers say talk of corporate exits – known as inversions – is growing, in the wake of several recent deals that have taken major U.S. firms offshore.
‘Inversion’ means ‘escape while there’s still time’. They have to find a name that disguises it’s true nature, like ‘intact dilation and extraction’ in place of ‘partial-birth abortion’, so that they can still feel good about themselves while doing damage.
The U.S. has been hit by a wave of corporate exits in the last few years, as businesses grow impatient with what they regard as antiquated U.S. corporate tax rules, and the slow pace of rewriting them in Congress.
Of course, it’s too much to expect that Congress will do its job and pass laws that promote business rather than punish it.
Recently, Senate Finance Committee Chairman Ron Wyden (D., Ore.) announced that he will seek to place new restrictions on corporate exits as of May 8, 2014. Mr. Wyden has not drawn a lot of GOP support for his retroactive approach, however, suggesting that the window remains open.
Democrats, the party of punishing people.
The legislation to be unveiled on Tuesday is expected to take several steps to minimize the ability of firms to exit. Those measures also are supported by President Barack Obama. The bill is being sponsored by the influential brothers, Sen. Carl Levin (D., Mich.) and Rep. Sander Levin (D., Mich.), who is the top Democrat on the House Ways and Means Committee.
Democrats, the party of punishing people. One of the hallmarks of a totalitarian regime is that they try to keep people from escaping.