A pair of Democrats in the House have introduced legislation to reduce the number of corporate tax inversions by clamping down on the strategy of earnings stripping.

[IMGCAP(1)]House Ways and Means Committee ranking member Sander Levin, D-Mich., and Budget Committee ranking member Chris Van Hollen, D-Md., introduced the bill Tuesday. Earnings stripping—a common tax strategy following an inversion—involves disproportionately leveraging a U.S. company with debt and “stripping” the U.S. tax base through deductible interest payments.

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