A pair of Democratic senators said they intend to close loopholes in the corporate inversion tax rules that encourage multinational corporations to move their headquarters outside the U.S. by acquiring a company overseas.
The practice was recently highlighted by news that the pharmaceutical giant Pfizer is seeking to cut its taxes by proposing a hostile takeover of a rival drug maker, AstraZeneca, which is based in the United Kingdom (see Pfizer Bids for U.K. Address as U.S. Tax Reform Stalls). Sen. Carl Levin, D-Mich., who chairs the Senate Armed Services Committee and the Senate Permanent Subcommittee on Investigations, has introduced a series of bills in recent years aimed at preventing U.S. corporations from using offshore tax havens, and he released a statement Thursday warning that he and his colleagues plan to introduce a bill focused on inversions.
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