Wednesday, July 16, 2014

CORPORATE WELFARE UNDER SCRUTINY

U.S. Stands to Lose Billions From Corporate Tax Inversions
One Estimate Puts Lost Tax Revenue at Close to $20 Billion Over a Decade
Drug companies and medical device makers are making multi-billion-dollar merger deals to avoid high U.S. corporate taxes. How do so-called "inversion deals" work? How much revenue does the U.S. Treasury stand to lose from corporate tax inversions? It is difficult to say precisely, but one estimate puts the figure at close to $20 billion.

A nonpartisan congressional research panel said the U.S. would receive an additional $19.46 billion over a decade if most new tax inversions were essentially halted with proposed changes to the tax code. The estimate, by researchers at the Joint Commission on Taxation, is based on estimates from previous inversions, in which U.S. companies make overseas acquisitions to gain tax advantages, and doesn't take into account deals being made now
MORE:U.S. Stands to Lose Billions From Corporate-Tax Inversions - WSJ: