Tags: Lew | Business | Tax | Inversion

Lew: Business Tax Reform Best Way to Address 'Inversions'

Thursday, 21 Aug 2014 05:57 PM

Treasury Secretary Jacob J. Lew said the best way to deal with the issue of corporate inversions would be through a comprehensive revamp of business taxation, according to a statement from the department.

Lew’s comments came in a meeting with academics Thursday in Washington, including Alice Rivlin of the Brookings Institution, Maya MacGuineas of the New America Foundation and Jared Bernstein of the Center on Budget and Policy Priorities, the Treasury said.

Lew’s comments echo his previous statements on the issue, which emphasized reducing tax rates and making it harder for U.S. companies to shift profits overseas. The Treasury Department is also working on options for regulatory steps to curb inversions or make them less attractive.

During the meeting, Lew “expressed the same view he’s expressed publicly about the problem of inversions,” Bernstein said in a telephone interview after the meeting.

In a recognition that such initiatives probably won’t become law soon, the administration is advocating retroactive legislation to prevent U.S. companies from changing their tax address by purchasing a smaller foreign company.

That proposal would penalize eight pending deals, including inversions by Medtronic Inc. and AbbVie Inc.

In inversions, U.S. companies take a foreign address for tax purposes, increasing their access to their own offshore profits and making it easier to reduce their future U.S. taxes.

According to the Treasury Department, other people at the meeting included Austan Goolsbee, former economic adviser to President Barack Obama, and Leslie Samuels, a partner at Cleary Gottlieb Steen & Hamilton LLP who is a former Treasury Department official.

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Economy
Lew: Business Tax Reform Best Way to Address 'Inversions'
Lew, Business, Tax, Inversion
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2014-57-21
Thursday, 21 Aug 2014 05:57 PM
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