"One thing we should do is push for passage of legislation introduced by Sen. Carl Levin and Rep. Sandy Levin (both Michigan Democrats) that would make it harder for American corporations to merge with foreign corporations in a way that enables them to operate as if they are American corporations while claiming to be foreign for tax purposes."
Solutions
In early July the House passed an amendment by a vote of 221-200 denying federal contracts to American companies that have reincorporated in Bermuda or the Cayman Islands. This is not yet law, but is attached to the Energy/Water appropriations bill. It is a beginning, but only lists these two tax haven countries and won't affect Walgreens, should it make itself appear to be a Swiss company.
The Stop Corporate Inversions Act of 2014 is a more comprehensive effort that "increases the needed percentage change in stock ownership from 20 percent to 50 percent and provides that the merged company will nevertheless continue to be treated as a domestic U.S. company for tax purposes if management and control of the merged company remains in the U.S. and either 25 percent of its employees or sales or assets are located in the U.S."
Republicans will obstruct the bill. The Joint Committee on Taxation estimates that the legislation would save $19.5 billion over 10 years .
This would be a start toward fixing this problem. A small start, admittedly, but a start.
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