Wednesday, August 13, 2014

Senate Leaders Urge Executive Action to End Corporate Inversion Mergers

Three leading Senators urged executive action to end corporate inversions motivated by tax considerations. In a letter to President Obama, Senate Assistant Majority Leader Dick Durban (D-IL), and Senators Jack Reed (D-RI) and Elizabeth Warren (D-MA), key members of the Banking Committee, urged him to use executive authority to reduce or eliminate tax breaks for companies that shift their headquarters overseas to avoid paying U.S. taxes. As Congress considers legislative solutions to the problem, the lawmakers emphasized the need for immediate action, considering the growing trend in corporate tax avoidance. While there is legislation pending in the House and Senate, noted the Senators, the coming flood of corporate inversions justifies immediate executive action.