Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
July 29, 2015

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

Warren is among the Democrats signing a new letter seeking executive action on corporate inversions. (Tom Williams/CQ Roll Call)

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.”


Corporate Tax: Bring It Up to Code | Commentary

Get breaking news alerts and more from Roll Call in your inbox or on your iPhone.

Comments (21)

Leave a Comment

Your email address will not be published.

author email

  1. TeddyDNovak

    Aug. 5, 2014
    1:09 p.m.

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


    • Nobama

      Aug. 5, 2014
      3:21 p.m.

      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

        Aug. 6, 2014
        4:19 p.m.

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

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

      • erick

        Aug. 25, 2014
        3:21 p.m.

        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

      Aug. 25, 2014
      3:16 p.m.

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

      • TeddyDNovak

        Aug. 25, 2014
        4:43 p.m.

        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.*

        • erick

          Sept. 1, 2014
          11:53 p.m.

          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.

  2. Johnrambo1

    Aug. 6, 2014
    6:49 a.m.

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

  3. Verbotene Gedanken

    Aug. 6, 2014
    4:18 p.m.

  4. Cade Yaeger

    Aug. 13, 2014
    4:29 p.m.

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

  5. erick

    Aug. 25, 2014
    3:22 p.m.

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

    • pitch1934

      Aug. 25, 2014
      8:34 p.m.

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

  6. Anonymous

    June 27, 2015
    3:57 a.m.

    Thank you so much for giving everyone such a pleasant chance to check tips from this web site. It really is so kind and jam-packed with a lot of fun for me personally and my office acquaintances to search your website really thrice in a week to read the fresh stuff you have got. And indeed, I’m also at all times fulfilled concerning the staggering inspiring ideas served by you. Some two tips on this page are clearly the most efficient we have all had.

  7. Anonymous

    July 2, 2015
    12:03 p.m.

    Yesterday, while I was at work, my sister stole my iPad and tested to see if it can survive a 30 foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is completely off topic but I had to share it with someone!

  8. Anonymous

    July 4, 2015
    6:51 p.m.

    Hi there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thank you for sharing!

  9. Anonymous

    July 8, 2015
    12:28 a.m.

    I like this blog its a master peace ! Glad I detected this on google .

  10. Anonymous

    July 18, 2015
    2:51 a.m.

    I’ve recently started a web site, the information you provide on this web site has helped me tremendously. Thanks for all of your time & work. “So full of artless jealousy is guilt, It spills itself in fearing to be spilt.” by William Shakespeare.

  11. Anonymous

    July 19, 2015
    9:20 a.m.

    Enjoyed looking at this, very good stuff, appreciate it. “Hereafter, in a better world than this, I shall desire more love and knowledge of you.” by William Shakespeare.

  12. Anonymous

    July 25, 2015
    8:22 a.m.

    Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I’d prefer to use some with the content on my blog whether you don’t mind. Natually I’ll give you a link on your web blog. Thanks for sharing.

  13. Anonymous

    July 25, 2015
    8:49 p.m.

    Terrific work! This is the type of information that should be shared around the web. Shame on the search engines for not positioning this post higher! Come on over and visit my site . Thanks =)

  14. Anonymous

    July 26, 2015
    7:47 a.m.

    I appreciate you sharing this post. Really thank you! Cool. Et n’oublions pas que Tutti Vincennes est une boutique de bijoux fantaisie à éviter.

Sign In

Forgot password?



Receive daily coverage of the people, politics and personality of Capitol Hill.

Subscription | Free Trial

Logging you in. One moment, please...