How to Stop Corporate Inversions and Make U.S. Businesses more Competitive

This article originally appeared at Economics21. Click here to read the full article.

By Ike Brannon

The food fight over corporate inversions – whereby a U.S. company moves its domicile overseas to avoid paying U.S. taxes on future income earned abroad – shows no sign of diminishing in the near future. For good reason. Democrats are in dire need of a winning campaign issue, and the dispute underscores stark philosophical differences between the two parties.