| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : US Economy Last Updated: Jul 24, 2014 - 1:57 PM


Up to 25 more US companies set to move overseas to cut tax bills
By Michael Hennigan, Finfacts founder and editor
Jul 23, 2014 - 8:12 AM

Email this article
 Printer friendly page
Ron Wyden, Senate Finance Committee chairman, Washington DC, July 22, 2014

Up to 25 more US companies are set to move overseas to cut their tax bills this year, a Democratic senator has warned on what he termed the "virus" of tax inversions.

Ron Wyden, Senate Finance Committee chairman, at a hearing Tuesday said the Finance Committee must take decisive action to end corporate inversions - - the practice of US companies moving their headquarters abroad in pursuit of lower tax rates. Wyden also said inversions represent a clear sign that the US tax code needs comprehensive reform to keep America competitive and create good-paying jobs.

Wyden said no senior executives of inverting companies would appear at the hearing and this week Accenture, the management consultancy firm objected to Finfacts calling the firm "the US consultancy."

We have offered to replace the term "the US consultancy" with: "the former consulting arm of Arthur Andersen, the defunct US accounting firm."

Andersen Consulting was incorporated in Bermuda in 2001 and the global firm became Irish in 2009.

"None of our top executives are moving to Ireland, but that's totally irrelevant," said a company spokesman according to The Wall Street Journal in 2009 when the tax residency was moved from Bermuda to Ireland. "If it was a US corporation, how many CEOs live in Delaware?"

Finfacts:
US-Ireland Tax Inversions 600,000+ staff: Kenny, Noonan met with top US corporate lawyers

“This wave of inversions may be good for shareholders, investment bankers and private equity firms, but they are bad for America,” Wyden said. “The Finance Committee must respond now, on a bipartisan basis, to plug the inversion loophole. America’s free enterprise system works best when there’s a level playing field, and inversions further distort the free market by bestowing tax favours on some at the expense of the American taxpayer.”

Corporate inversions have become a growing problem in recent years, with 14 completed or announced deals in 2014 alone. The Joint Committee on Taxation has estimated nearly $20bn in revenue will be lost over ten years due to inversions.

Ireland, the Netherlands, UK and Switzerland are the locations of choice for the former US companies - - most of the firms retain their management and control in the United States.

Jack Lew, Treasury secretary, last week urged Congress to pass a White House proposal to eliminate inversions by lifting the foreign ownership threshold for such deals from 20% to 50%.

Senator Orrin Hatch, the ranking Republican, said he is open to short-term measures to curb corporate inversions but doesn't support any of the proposals floated so far by Democrats.

Wyden said he hopes to see Congress take up bipartisan legislation to address the issue in the very near future. Wyden also said taking swift action to close the inversion loophole will give Congress the space needed to work on a comprehensive tax reform plan, the best step for preventing issues such as inversions from occurring in the first place.

“The American tax code is an anti-competitive mess,” Wyden said.  “Comprehensive tax reform needs to happen soon. The longer we wait, our tax base will keep eroding, cash piles overseas will continue to grow, and investment dollars will be driven overseas. After the inversion loophole is closed, this committee will pursue reform that creates a level playing field for U.S. companies and workers in the global economy. That means a fair and simple code designed to help businesses grow.”

Witnesses at Tuesday’s hearing included Robert Stack, deputy assistant secretary for international tax affairs at the Treasury Department; Pascal Saint-Amans, director of the Centre for Tax Policy and Administration at the Organisation for Economic Co-operation and Development (OECD); Mihir Desai, professor of finance at the Harvard Business School and professor of law at Harvard Law School;Peter Merrill, director of the National Economic and Statistics Group at PricewaterhouseCoopers; Leslie Robinson, associate professor of business administration at the Tuck School of Business at Dartmouth College; and Allan Sloan, the senior editor at large at Fortune magazine. Their testimony is available here.

The full text of Wyden’s statement is available here.

C-Span video

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

US Economy
Latest Headlines
US jobs rose by 215,000 in July; Unemployment rate stable at 5.3%
US economy grew at weak pace in Q2 2015 - Worst expansion since 1945
Decoupling of per capita GDP, productivity, private employment, and median family income in America
US economy stumbles again in 2015
Income gap highest in 30 years; No inequality rise in best-paying US firms
Fed minutes raise doubts about fragility of US recovery
Senate Democrats block trade deal authority for Obama
Five firms held 25% of top US non-financial companies cash pile in 2014
US added 223,000 jobs in April; Broad jobless rate at 10.8%
Investment struggles as dividends/ share buybacks at top US firms to exceed $1tn in 2015
US economic growth plunged in Q1 2015
Why the Fed may (almost) never raise interest rates
US jobless rate falls to 5.5%; Broad rate at 11%; Participation rate at 1978 level
US added 257,000 jobs in January; Broad jobless rate at 11.3%
US economy will soon see best years in a decade
US annualised GDP slowed sharply in final quarter 2014
US budget deficit to fall to 2.6% of GDP in 2015
US added 252,000 jobs in December; Jobless rate falls to 5.6%
US adds 321,000 jobs in November; Private sector adds 10.9m jobs in 57 months of growth
US manufacturing slowed in November
US retail spending over Thanksgiving weekend fell 11%
US consumer spending weak in October; Business investment fell again
US third-quarter GDP revised up to 3.9% annualised rate
After destroying banking secrecy US helps Swiss exporters
US oil imports from OPEC cartel at 30-year low
Tax-inverted "Irish" firm Actavis agrees to buy US Botox maker Allergan
US nonfarm payroll employment rose 214,000 in October' Jobless @ 6-year low
Swiss bankers await fallout of US tax evasion acquittal
Two PMI reports give contrasting trends on US manufacturing
US GDP increased at annualised 3.5% in third quarter of 2014
US city home price growth slowed again in August; Consumer confidence rebounded in September
US new orders for manufactured durable goods fell again in September
Loans to buy US shares at record highs
Global markets slide; US industrial production best in 3 years & jobless claims in 14-year low
US federal budget deficit dips to 2.9% of GDP in fiscal year 2014
US added 248,000 jobs in September; Jobless rate falls to 5.9%
US set to become world’s leading liquid petroleum producer again
Obama issues new rules to combat tax inversions
US Securities and Exchange Commission to pay $30m award to foreign whistleblower
Typical American household income in 2013 was below the 1989 level