The Obama Administration Moves To Crush Inversions
The Obama administration announced executive steps on Monday to curb down on the maneuver known as tax "inversions," by which companies slash their tax bills by moving their companies' tax bases overseas.
On a conference call with reporters Monday evening, Treasury Secretary Jack Lew said the administration was taking executive action since it had become clear Congress would not address the issue this year. He said the steps would make companies "think twice" about the maneuver.
"We've recently seen a few large corporations announce plans to exploit this loophole, undercutting businesses that act responsibly and leaving the middle class to pay the bill, and I'm glad that Secretary Lew is exploring additional actions to help reverse this trend," President Barack Obama said in a statement.
The new regulations will go into effect immediately, senior administration officials said Monday. Lew said on the call that they are aimed at reducing the benefits of and, "when possible," stopping inversions.
MORE TO COME...