The U.S. business tax code needs a radical overhaul to fight so-called "inversion" mergers and acquisitions to make the country's economy more competitive so it can accelerate growth and job and creation, Treasury Secretary Jack Lew says.
In an opinion piece for The Washington Post, the Treasury secretary discusses the increasingly urgent problem of inversions and calls on Congress to pass retroactive anti-inversion legislation as soon as possible.
A once-obscure tax dodge, corporate "inversion" deals have become increasingly common—especially in the pharmaceutical industry. In an inversion, a U.S. company sets up or buys another company in a country with a lower corporate tax rate and then calls the new country home— thereby dodging U.S. taxes it would otherwise have had to pay.
You can read Lew's opinion piece here.