Last September, President Obama and Treasury Secretary Jack Lew unilaterally changed corporate tax rules to prevent US companies from “inverting” – i.e. buying foreign companies to take advantage of lower corporate tax rates outside the US.
The result, inversions stopped, and US companies are now being acquired by foreign companies at a record rate — $156 billion in deals have been announced since September, double the value of two years ago.
In yet another example of the administration’s perverse economic policies, this rush to acquire US companies was widely predicted by bankers at the time of Lew’s edict.
And rather than work with Congress to level the playing field for US companies by reducing the world’s highest corporate tax rate and reworking an anti-growth corporate code, their answer?
Let them be acquired.
Is the administration so hostile to business that they simply decided that this is ok?
Regardless, it’s time to junk our tax code and start over with something that includes incentives for American companies to stay in America.