|Image: Andrew Harrer/Bloomberg|
By Richard Rubin
16 July 2014
The Obama administration called for immediate congressional action to stop U.S. companies from using cross-border mergers to escape the country’s tax system, the latest trend in corporate deal-making.
In a letter calling for a “new sense of economic patriotism,” Treasury Secretary Jacob J. Lew said Congress should pass tax changes retroactive to May.
Senate Majority Leader Harry Reid said today that he wants to advance legislation proposed by Senator Carl Levin of Michigan and that it’s taken too long already. White House Press Secretary Josh Earnest said President Barack Obama will discuss the issue more in the weeks ahead.
“We should prevent companies from effectively renouncing their citizenship to get out of paying taxes,” Lew wrote in the letter to top congressional tax writers, which was dated yesterday. “We should not be providing support for corporations that seek to shift their profits overseas to avoid paying their fair share of taxes.”