Two Ranking Democrats to Offer Bill Aimed at Inversions
ByTwo House Democrats plan to introduce a bill on Tuesday that would seek to curtail a strategy used by former American companies to cut their United States tax bills.
The measure takes aim at so-called corporate inversions, where American companies move their headquarters overseas through a merger to save on taxes at home. The biggest such deal is Pfizer’s planned $150 billion mergerwith Allergan.
The bill would limit certain tax deductions, blocking a company’s ability to use interest from debt payments by its American operations to its foreign parent company to offset taxes, a practice referred to as “earnings stripping.” The bill will be introduced by Representative Sander M. Levin of Michigan, the ranking Democrat on the Ways and Means Committee, and Representative Chris Van Hollen of Maryland, the top Democrat on the Budget Committee…
Two Ranking Democrats to Offer Bill Aimed at Inversions
