In a brief Op-Ed column written for the New York Times website earlier this week, Congressman Sandy Levin made the case for eliminating corporate tax loopholes known as “inversions.”
Levin, a Royal Oak Democrat who represents most of Macomb
County, has been a leader in this fight. Inversions, which sometimes amount to
little more than a corporation setting up a new address at an overseas post
office box, are widely criticized as ethically questionable. Yet, Congress has
not acted to restrict or eliminate them.
County, has been a leader in this fight. Inversions, which sometimes amount to
little more than a corporation setting up a new address at an overseas post
office box, are widely criticized as ethically questionable. Yet, Congress has
not acted to restrict or eliminate them.
Here’s a portion of Levin’s column:
“It is neither unusual nor surprising
that companies seek to lower their taxes. But in recent years, a growing number
of big corporations have taken that effort to the extreme by reincorporating
overseas in order to reduce or entirely avoid paying their fair share of U.S.
taxes. The practice, known as a corporate inversion, involves buying a foreign
corporation and setting up the combined company’s tax address overseas – even
as it maintains its headquarters in the United States.
that companies seek to lower their taxes. But in recent years, a growing number
of big corporations have taken that effort to the extreme by reincorporating
overseas in order to reduce or entirely avoid paying their fair share of U.S.
taxes. The practice, known as a corporate inversion, involves buying a foreign
corporation and setting up the combined company’s tax address overseas – even
as it maintains its headquarters in the United States.
“The wave of corporate
inversions – 14 reported this year alone – threatens to undermine the U.S. tax
base and our economy, placing a greater share of the burden on other companies
and American taxpayers. It underscores why Americans are losing confidence in
our tax system, with the majority saying it isn’t fair. Ordinary Americans
can’t move their address overseas to avoid paying taxes.
inversions – 14 reported this year alone – threatens to undermine the U.S. tax
base and our economy, placing a greater share of the burden on other companies
and American taxpayers. It underscores why Americans are losing confidence in
our tax system, with the majority saying it isn’t fair. Ordinary Americans
can’t move their address overseas to avoid paying taxes.
“Companies that reincorporate
overseas will no doubt continue to benefit from being headquartered in the
United States, with our robust financial markets, protection of intellectual
property rights, support of research and development, stable communities and
wealth of educated workers.”
overseas will no doubt continue to benefit from being headquartered in the
United States, with our robust financial markets, protection of intellectual
property rights, support of research and development, stable communities and
wealth of educated workers.”
