Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
December 18, 2014

Durbin, Reed, Warren Seek Executive Action to Combat ‘Inversion’

banking004 070814 1 445x295 Durbin, Reed, Warren Seek Executive Action to Combat Inversion

Warren is among Democrats urging the president to take executive action on corporate inversions. (Tom Williams/CQ Roll Call File Photo)

A trio of liberal Senate Democrats want President Barack Obama to make use of his “pen and phone” to cut down on corporate “inversions.”

In a new letter, Sens. Richard J. Durbin of Illinois, Jack Reed of Rhode Island and Elizabeth Warren of Massachusetts seek executive action to reduce or eliminate tax preferences that come along with the business practice, in which a U.S. company will acquire an overseas company and then be based in the foreign country, at least on paper. The practice has increased in popularity as a tax-avoidance strategy.

“We have introduced … the Stop Corporate Inversions Act, and are working with our colleagues in Congress to pass legislation as soon as possible to eliminate tax breaks for inverted corporations, including closing the inversion-acquisition loophole,” the senators wrote. “However, our efforts should not preclude executive action to prevent corporate inversions. The coming flood of corporate inversions justifies immediate executive action.”

With lawmakers having departed for August recess, there’s no chance for legislative activity to address inversions in the near future, and beyond that, there’s no indication of agreement on how to address the situation. However, the three senators signing Tuesday’s letter dismissed the idea that an overhaul of corporate tax law would address the problem.

“Some have argued that comprehensive tax reform and lower U.S. corporate tax rates are the solution to this urgent problem. While we support efforts to restore fairness to the tax code and encourage domestic economic growth and job creation, this ignores the fact that even if tax reform successfully reduces the U.S. corporate tax rate to 28 percent as outlined in your proposal for business tax reform, companies will still chase lower tax rates in jurisdictions like Ireland where the corporate tax rate is 12.5 percent,” the letter said. “This is a race to the bottom the United States simply can’t win and should not be lured into entering.”

Related:

Corporate Tax: Bring It Up to Code | Commentary

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  • TeddyDNovak

    And the communists built the Berlin Wall to prevent anyone from fleeing the oppression they created. Some things never change.

    http://www.zazzle.com/FirstPrinciples?rf=238518351914519699

    -

    • Nobama

      So now the Bolsheviks want Obama to change the Tax Code by executive order???
      F them!
      The next GOP President should, by executive order, instruct the IRS to stop collecting Capital Gains tax. See how they like that.

      • Verbotene Gedanken

        “The next GOP President should, by executive order, instruct the IRS to ”

        …go to the roof of the building and jump off.

      • erick

        If the GOP comes to power, then they will proceed with their genocidal extermination plans against the working class. The CLASS WAR will be in full swing with a militarized police force.

    • erick

      Corporations loot, rape and pillage wealth from the American public;, then flee to their overseas tax havens with their ill gotten gains.

      • TeddyDNovak

        It’s great when idiots self-identify. Thanks Sparky. Now go back to bed like a good little Brownshirt Drone and leave the tough things like thinking to those of us that can. You’re just going to hurt yourself if you try. I am impressed with the number of words you managed to string together while drooling, however.

        http://www.zazzle.com/FirstPrinciples*

        • erick

          Depending upon the current position of the authorities in power, sometimes 2 plus 2 equals 3, and sometimes 2 plus 2 equals 5. But if you say that 2 plus 2 equals 4, then you have committed a thought crime against the state. The NSA monitors your communications to pursue thought crimes.

  • Johnrambo1

    Let’s just be honest and admit it. Liberals are not really liberals at all anymore….

  • Verbotene Gedanken
  • Cade Yaeger

    The ghost of Karl Marx must be thrilled about his resurrection by democrats in America.

  • erick

    Join the boycott on Koch industries. See http://www.boycott kochbrothers.com

    • pitch1934

      I have been on that boycott for a couple of years.

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