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08.07.17

IFPTE Joins Americans for Tax Fairness Letter in Support of Preserving Rule to Limit Corporate Inversions

IFPTE was one of 11 unions that added their support to a letter this week urging the Trump Administration to preserve a rule aimed at making it more difficult for corporations to dodge U.S. tax obligations.

The corporate tax-loophole maneuver was made more difficult last year by the adoption of an Obama Administration “earnings stripping” rule to slow down the unsavory business tactic of ‘inversions’ that allow a typically larger U.S. company to merge with a smaller foreign company in order to relocate outside of the United States to avoid paying taxes on their earnings.

However, the current administration is considering measures to reverse or erode the earnings stripping rule, prompting the Americans for Tax Fairness letter to the Department of the Treasury, warning that, “reversing course on the earning stripping rule could mean the return of frequent and sizable corporate inversions.” Read the full letter below and the press statement here.

RELATED:
(8/4/2017) – Institute on Taxation and Economic Policy, JustTaxes Blog – Trump Administration May Make Corporate Inversions Great Again

Americans for Tax Fairness Letter

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