Monday, September 1, 2014

Tax Inversions

A growing number of U.S. businesses are using American tax laws to lower their tax liability through "tax inversions" where domestic businesses are acquired by or merged with foreign companies and reincorporate abroad, thus paying less in taxes. Mylan Inc. of Cecil, Pennsylvania  the generic pharmaceutical giant, did just that. Obama has publicly criticized this and has threatened the dreaded executive action.

But, and as Bloomberg reports, the Obama administration expressly endorsed the practice in 2009 when it bailed out Delphi Automotive, the parts-maker that supplies the also-bailed-out General Motors. Delphi was given $1.7 billion in public money and reincorporated in England to lessen the American tax bite — with the Treasury Department's full knowledge. And that's with the IRS' criticism.

So, is this notion a belief or just an available mace?

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