Inversions and Tax Reform
Yesterday’s letter from Treasury Secretary Jack Lew on inversions is just the latest headline on an issue that has dominated the tax discussion ever since Pfizer proposed to merge with AstraZeneca back in May. As the chart below notes, the number of companies moving their headquarters overseas is accelerating and it’s sending a strong signal that something is very wrong with our tax code.
The motivation for inverting is simple – it allows companies to avoid paying US taxes on foreign earnings. This is a uniquely American problem. …