Everyone I spoke to on Wall Street about inversion deals said they wished there were no reason for these deals and that our tax system were more competitive and, therefore, more attractive.
"We have a flawed corporate tax code that is driving U.S. companies overseas," Mr. Dimon said on the conference call. "If government was smart, they'd look at it holistically," he added, suggesting that a moratorium on such deals won't work. "Even if you stop and say, 'Don't invert,' capital will move away." Mr. Dimon insisted, "I'm just as patriotic as anyone.
While an overhaul of the corporate tax system may be the ultimate goal, the gridlock in Washington suggests it is unlikely to come anytime soon. Corporate tax reform is nice in theory, but tough in practice. It most likely requires lower tax rates and the closing of loopholes, which many companies are sure to fight. And whatever new, lower tax rate is determined, there will probably be another country willing to lower its rate further, creating a sad race to zero.