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Medtronic Incorporated
Give U.S. multinationals an incentive to not dodge taxes
Give U.S. multinationals an incentive to not dodge taxes

When is a U.S.-based company not considered a U.S. company by the IRS? When it buys a smaller firm in a foreign country and — presto chango! — deems that company to be its parent, escaping the obligation to pay taxes to the U.S. Treasury on its foreign earnings. This process, called "inversion," is becoming increasingly popular among U.S. multinationals, drawing howls from lawmakers and the Obama administration. But a quick legislative fix won't last long. That's because the larger problem is a uniquely flawed U.S. tax code that encourages multinationals to engage in all sorts of accounting gimmickry. While every other developed nation taxes companies only...

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