The controversy over “tax inversion” continues to brew. This is the process of moving a corporation’s headquarters to a foreign location to avoid higher U.S. corporate tax rates.
According to recent media reports, including items in The Wall Street Journal and Forbes, there have been 22 significant inversions since 2011, mostly in the pharmaceutical industry, and numerous others are in the works. Tax inversion is becoming a hot election issue and preventive measures could become a major plank in future tax reform proposals. Appeals to patriotism are coming from both sides of the aisle.
President Obama has been quoted by The Wall Street Journal as saying,” My attitude is I don’t care if it’s legal, it’s wrong.”