Posted on 11/18/2015 4:33:33 PM PST by markomalley
Treasury Secretary Jack Lew told members of Congress Wednesday that he will announce a new administrative effort this week to stop corporate inversions, as attempts at legislation to stop companies from moving their headquarters out of the U.S. have failed.
Lew said in a letter to lawmakers that he would issue "additional targeted guidance to deter and reduce further the economic benefits of corporate inversions."
Lew first took action to undercut the tax benefits of inversions in September 2014, announcing several specific rules meant to prevent companies from moving their headquarters abroad for tax purposes and limiting the tax breaks they could reap if they were successful in moving out of the country.
Wednesday's letter did not indicate what further efforts the Treasury could take.
Lew cautioned that only legislation could fully stop inversions, which are tax maneuvers in which U.S. companies merge with businesses in low-tax countries and then place the new headquarters of the combined company in the low-tax jurisdiction.
But he said that he had a mandate to take whatever administrative action he could to limit companies' ability to undertake inversions. By moving their headquarters out of the U.S., he said, they avoid taxes but still enjoy the benefits of operating in America, "such as our rule of law, our skilled workforce, our infrastructure and our world-class research and development capabilities."
Last year's announcement was sufficient to cause some companies to call off their inversions. But it hasn't completely stemmed the flow. In October, pharmaceutical giant Pfizer announced that it was in talks with Ireland-based Allergan about combining.
"Creative accountants and lawyers will continue to find new ways for companies to move their tax residences overseas and avoid paying taxes here at home," Lew warned.
Rep. Sander Levin of Michigan, the ranking Democrat on the House Ways and Means Committee, welcomed Lew's announcement.
"The fact that American companies, including Pfizer, continue to pursue inversions makes clear that additional steps are needed to stop this trend," Levin said. "I am encouraged that Treasury intends to take additional steps to curb tax inversions, but also recognize that their authority in this area is not unlimited — as Secretary Lew noted today. Congress should get off the sidelines and take action to change the law to stop these tax-motivated inversions."
Obama is going to mandate companies stay here, deal with unions, pay confiscatory taxes, and ultimately go out of business.
Great plan. /s
We’ve gone Galt and are working at becoming as self-sufficient as possible while paying as little to the fascist beast as possible. I fear we did this a little too late but didn’t have enough money saved until this year.
For just this once, I completely agree with Obama.
American companies need to be punished if they move overseas, and rewarded if they move back here.
In fact, all businesses. Imports need tariffs, and companies need to find manufacturing things in America is beneficial.
We are not nearly aggressive enough on this issue.
For an entire generation, we have sold out.
Both parties have sold out America.
Point Two. All industrial, commercial, manufacturing and business establishments of any nature whatsoever shall henceforth remain in operation, and the owners of such establishments shall not quit nor leave nor retire, nor close, sell or transfer their business, under penalty of the nationalization of their establishment and of any and all of their property.
It. Was. Supposed. To. BE. FICTION.
So was “1984.”
“4. Confiscation of the property of all emigrants and rebels. “
Plank number 4 of communist manifesto.
Also Nazi Germany confiscated the property of emigrating Jews in the prewar period.
At what point will we realize America is an authoritarian regime at this point.
Freedom is such an antiquated anti-Progressive idea.
Typical liberal asshat. Instead of backing down and correcting the problem YOU created, shoot the companies for having the nerve to notice.
Well, at least we know there’s a happy ending. (Except for Eddie)
:{)
Yeah, if only we had a few more rules, everything would be all right.
Idiot. The longer this guy pulls crap like this, the more I’m beginning to need to see a presidential candidate and a congress that will go after the losers who put this guy in power. Winning is not enough. I need to see some punishment dealt out.
Nice Iron Curtain Lew wants to build...
Your problem is that they’re rewarded if they move overseas and punished if they return. Even if you fix the tax issues, they still have to deal with a generation of SJW parasites as their new hires.
Actually in a world with supercomputers on desktops it is very simple. Any profits earned in the US are taxed in the US (overhead, administrative costs, etc. are allocated to the country where headquartered). If it is produced outside of the US and sold in the US there is an import tariff.
Rand was a prophet.
L
Ah. The ‘syrians’ drill practice includes gutting industries, too.
The sole recipients of anything coming here are illegals, criminals, mujahiroon, and terrorists.
Who doesn’t want to visit here? Which business would COME here?
Isn’t that a bill of attainder? Isn’t that forbidden in the constitution?
People think Obama is a Communist, but this is the textbook definition of economic fascism.
Private ownership of the means of production under government control. You can, as they say, look it up.
You got that right. The fascist fight against human nature will always require guns.
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