Senate takes on tax inversions
Published 12:00 am Wednesday, July 23, 2014
The chorus of voices on Capitol Hill calling for an end to corporate inversions grew louder Tuesday as the Senate Finance Committee held a hearing on the issue of U.S. companies reincorporating abroad, and legislators proposed new punitive measures against inverted companies.
Opening the hearing, Sen. Ron Wyden, D-Ore., chairman of the committee, said that chief executives from several companies in the process of inverting were invited to testify, but none accepted the offer.
Wyden went on to describe inversions as a “plague” and called for retroactive legislation that would eliminate substantial tax benefits of many of the cross-border deals announced over the last year.
But there was no consensus on how to address the issue.
Sen. Orrin Hatch, R-Utah, the ranking member of the committee, said that retroactive legislation taking aim at companies that have already struck deals was not the answer.
“Rather than incentivizing American companies to remain in the U.S., these bills would build walls around U.S. corporations in order to keep them from inverting,” said Hatch, referring to proposals from Wyden and Democrats in the House of Representatives.
“This approach, in my view,” he said, “completely misses the mark.”