Brown, PC Brown, PC Tax Practice Group 888.870.0025
Call for an initial consultation
Call 888.870.0025

Schumer to Introduce Anti-Inversion Proposal

Dozens of inversion deals are at risk of penalization by a top Senate Democrat's proposal to limit future deductions for companies that attempt to reincorporate overseas.

The proposal by Charles Schumer of New York, the No. 3 leader in the Senate's Democratic Majority, seeks to limit the amount of deductible interest for companies looking to change their tax address from 50 percent to 25 percent of U.S. taxable income.

President Barack Obama included a similar provision in his annual budgets. Mr. Schumer's proposal is the first time the language has appeared in a legislative proposal, according to New York-based independent corporate tax consultant, Robert Willens.

"It would have a very profound and immediate effect on these companies and would be very effective at reducing the attractiveness of inversions," Willens said. "This is certainly a political statement."

Mr. Schumer has yet to decide when he will introduce the proposal, according to one of his aides.

Medtronic Inc. and AbbVie Inc. are among several companies with pending inversion deals that would allow them to cut their corporate tax rates by moving their tax home outside the country by buying smaller foreign businesses.

Source: Rubin, Richard, "Schumer Anti-Inversion Tax Plan Could Reach Back to 1994," BloombergΒΈ September 7th, 2014

No Comments

Leave a comment
Comment Information
Print this Page
Email Us For A Response

Request A Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact Information

Brown, PC
500 Main Street
Suite 400
Fort Worth, TX 76102

Phone: 817-870-0025
Fax: 817-870-0515
Map & Directions