Over the last several months, we’ve seen dozens of U.S. companies shift their operations overseas in search of lower taxes, with Burger King being one of the latest. Dozens more companies are reportedly considering similar arrangements. This increasingly popular practice is known as of corporate “tax inversion,” which is a loophole in the tax code that allows a U.S.-based corporation to buy a foreign company, “dissolve” its U.S. corporate status and then reincorporate to capitalize on that country’s lower tax rates. Such a practice could cost the U.S. $20 billion over the next 10 years.
Despite these actions by some corporations, Congress has failed take a stand and stop these so-called corporate deserters from reincorporating in a low-tax country to avoid paying their fair share of federal taxes. In fact, rather than deny tax deduction to firms that shift operations overseas to avoid U.S. taxes, the incumbent Congressman R...
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