Corporate Expatriation, Inversions, and Mergers: Tax Issues
This report discusses relevant portions of the U.S. corporate income tax system and how inversions have commonly been structured. It also looks at how Congress and Department of the Treasury have reduced the benefits of inversions, including The American Jobs Creation Act, as well as post-2004 inversions and treasury regulations, and policy options.
Corporate inversions: are they tax avoidance schemes or the reaction to an unfair tax system?
In an attempt to bypass the highest corporate taxes levied on businesses in the world, inversions for the US domestic corporations became the innovative strategy implemented throughout the corporate arena. The result of these clever tax avoidance ploys ended in a loss of over $34 billion dollars in lost tax revenue. In an attempt to stench the flow of inversion mania, the House Ways and Means Committee introduced legislation in January 2015 affectionately named the “Stop Corporate Inversions Act of 2015” (Forbes, 2015). The purpose of the legislation is to close a loophole in the IRC section 7874 rule which had unsuccessfully stemmed the avalanche of inversion tax avoidance mergers and acquisitions.
The Use of Qualitative Information in Macro-Economic Policy Analysis
The majority of macro-economic policy models takes for granted that conflicts among objectives can be assessed by means of a tradeoff analysis. Such tradeoffs imply that sacrifices and benefits of various impacts of decisions can be measured on a cardinal scale, so that a conventional macro-economic utility or welfare analysis can be applied.