New Treasury Department Regulations Will Not Fix America’s Competitiveness Problem
5th April 2016
The U.S. Treasury Department yesterday released new regulations they claim will curb business inversions. In reality, this is the latest in a line of regulations that have and will fail to address the underlying problem because they are treating a symptom rather than the root cause of inversions.
America has a competitiveness problem, and inversions together with foreign acquisitions are the consequences of this problem. By choosing to treat the symptom rather than the disease, Treasury is ensuring American businesses face the tough choice of fleeing the U.S. tax system or remaining headquartered in the U.S. and facing a crushing disadvantage when competing with foreign businesses.