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Stricter tax inversion rules punish stocks of firms mulling such moves
Stricter tax inversion rules punish stocks of firms mulling such moves

The Obama administration's tougher rules on offshore corporate inversions had an immediate effect Tuesday, pushing down the stock prices of companies considering such moves. But the highly technical changes to the tax code did not appear to go far enough to derail the controversial deals, in which U.S. companies avoid higher tax rates by buying smaller foreign firms and moving their headquarters abroad. The measures unveiled Monday by the Treasury Department would make it less profitable for American companies to reincorporate overseas, largely by limiting the ability to shelter foreign earnings from U.S. taxes, analysts said. Still, there probably are enough potential tax savings...

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