Skip to main content

U.S. President Barack Obama speaks during swearing-in ceremonies on the West front of the U.S Capitol in Washington, January 21, 2013.   REUTERS/Kevin Lamarque (UNITED STATES  - Tags: POLITICS)
The latest corporate tax dodge to hit the news is the practice of inversions, big corporations either merging with other corporations or buying a company and then claiming that they are based in that country, thereby avoiding paying corporate taxes in the U.S. The Joint Commission on Taxation has estimated that the U.S. could lose as much as $19.5 billion in tax receipts in the next decade because of this growing practice. Senate Democrats have introduced the Stop Corporate Inversions Act to curtail the practice, but recognize that this legislation isn't going anywhere fast in this Congress. So Sens. Dick Durbin, Elizabeth Warren, and Jack Reed have written to President Obama, asking him act on his own on the issue.
“The coming flood of corporate inversions justifies immediate executive action,” says the letter, spearheaded by Senator Richard J. Durbin of Illinois, the No. 2 Democrat, and signed by Elizabeth Warren of Massachusetts and Jack Reed of Rhode Island. […]

Treasury Secretary Jacob J. Lew said at a conference in New York last month that he did not believe he had the power to act alone on the issue. But Mr. Obama recently delivered a speech decrying inversions, and administration officials had been evaluating the legality of unilaterally limiting them.

“They’re looking at what they can do on their own,” Senator Charles E. Schumer, Democrat of New York, said in an interview last week. “They want to do it. The president really dislikes the inversions, and if they feel they have a strong legal ability to do it, they will.”


The practice is increasing, with two large pharmaceutical companies and a national drug store chain (Illinois giant AbbVie, based in Illinois, Pennsylvania generic manufacturer Mylan, and Walgreens) all either just moving overseas or threatening to. President Obama focused on the issue in a speech last month in Los Angeles, saying, "I don’t care if it's legal. It's wrong. […] You shouldn't get to call yourself an American company only when you want a handout from the American taxpayers."

One of the Obama administration's  former Treasury officials, Stephen Shay, thinks that it is within the president's power to act on this unilaterally under existing tax law. Three U.S. senators agree.

Sign the petition: Walgreens must not cheat American taxpayers out of $4 billion by becoming a Swiss company.

12:31 PM PT: And boom.

WASHINGTON — The Obama administration is weighing plans to circumvent Congress and act on its own to curtail tax benefits for United States companies that relocate overseas to lower their tax bills, seeking to stanch a recent wave of so-called corporate inversions, Treasury Secretary Jacob J. Lew said on Tuesday.

Treasury Department officials are rushing to assemble a broad array of options that would “change the economics of inversions,” Mr. Lew said.

12:46 PM PT: And Boom #2:

Walgreen's backs off. http://t.co/... Big victory for @4TaxFairness, patriots and accountability
@LarryMishel

Originally posted to Joan McCarter on Tue Aug 05, 2014 at 11:48 AM PDT.

Also republished by Daily Kos.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site