A lot of U.S. companies may find themselves with new suitors if Congress gets its way.
In recent years, many U.S. corporations have tried to slash their tax bill by shedding their American citizenship and acquiring foreign companies. The tactic, known as "inversion," has caught the ire of Washington, which has sought creative ways to stop inversions for years, with limited success.
But tax reform now being debated in D.C. may create an opposite situation, giving foreign companies incentive to buy up U.S. firms, according to tax experts and mergers and acquisitions advisors.
Instead of an inversion, it would be a "reversion."
Much of the debate over the House tax plan has focused on the border adjustment tax — its benefit for exporters and the penalty for importers. Border adjustment would avoid taxing U.S. exports, but would put a blanket tax on imports into the country.