
Corporations like Burger King and medical device maker Medtronic are planning to desert America by becoming foreign corporations. They plan to do this by buying a foreign company, and by changing their corporate address on paper to a tax haven country. It will let them avoid paying billions of dollars in U.S. taxes. It’s what’s called a “corporate inversion” — and lots of other corporations may follow suit.
These “Benedict Arnold” corporations will still be headquartered here. They will still rely on our roads and bridges, our educated workforce, our legal system and more. They’ll also still depend on Americans to continue being their customers. They’ll just get out of paying their fair share of U.S. taxes.
Congress is considering legislation that would make it much more difficult for corporations to pursue inversions. We can also make sure that the corporations that are considering such a move know that we’re watching them, and that inverting will hurt their business. We must stop them, or we’ll end up getting stuck with the tab — leaving us to pay more in taxes, get fewer services or face a bigger deficit.
Report: Offshoring America’s Drugstore
Walgreens was exploring a tax inversion, but after we released this report (co-authored by Change to Win Retail Initiatives) and began mobilizing people to boycott the corporation, it backed down.
Check out the report — Offshoring America’s Drugstore: Walgreens May Move Its Corporate Address to a Tax Haven to Avoid Paying Billions in U.S. Taxes — to get a sense of the impact that a single tax inversion can have on our country.
Find Out More:
- Earnings Stripping and Serial Inverter Rule Submissions to the Administration
- ATF Letter of Support for House Stop Corporate Inversions Act 5/20/14
- ATF Letter of Support for Senate Stop Corporate Inversions Act 5/20/2014
- Sign on Letter: 56 National Organizations Urge the Senate to Pass Legislation to Stop U.S. Corporate Inversions
- Fact Sheet: Corporate Tax Inversions
- Fact Sheet: Offshore Corporate Tax Loopholes
- Letter to the Senate Finance Committee on the Stop Corporate Inversions Act (S. 2360)
- State Locations and Market Share of Major Chain Drug Stores
- Congressional Research Service: Selected Completed, Prospective and Withdrawn Corporate Tax Inversions, July 2014
- Polling Questions on Key Corporate Tax Issues
- Best Recent News Stories and Opinion Pieces about Corporate Tax Inversions
- The Hill Op-Ed: Time to Stop Corporate Defections
- Press Release: Tax Fairness Coalition Sees Poll Results on Corporate Inversions as Sign that the Issue Will Be Hot this Election Season
- General fact sheet on corporate inversions from partner organization FACT
- Bill specific fact sheet from partner organization FACT