Greener, More Competitive Pastures
When U.S. Companies Flee the High U.S. Corporate Tax Burden
HILL BRIEFINGWednesday, June 26, 2002
8:00 a.m.
Featuring Daniel Mitchell, Heritage Foundation; and Veronique de Rugy, Cato Institute.
B-340 Rayburn House Office Building
Veronique de Rugy's powerpoint presentation. (PPT, 80 Kb)
When the U.S. corporate tax burden becomes too oppressive, some U.S. companies protect themselves by becoming foreign companies. In a legal transaction referred to as an inversion, the U.S. parent company is placed under a newly created foreign company formed in a low-tax jurisdiction. The increasing number of inversions has generated much media and congressional attention, raising the question of whether U.S. companies have the right to reincorporate in low-tax jurisdictions like Bermuda. The legislative proposals designed to stop inversions do not tackle the underlying problem and further delay long overdue tax reforms. Join us for a briefing on the fundamental problem and the real solution.