Biden Tax Plan Targets Inversions to Keep Them From Coming Back

April 8, 2021, 8:46 AM

President Biden’s global tax plan takes aim at corporate tax inversions—merger transactions that U.S. companies use to shift their headquarters out of the U.S. to a low-tax country—even though the practice has largely disappeared.

The administration may recognize that some of its plans—like raising the corporate tax rate back to 28%, and getting tougher on taxing foreign income—may spur companies to think about inversions again, and Biden wants to nip any such sentiment in the bud, practitioners said.

The anti-inversion proposal, announced Wednesday by the Treasury Department as part of a more detailed version of Biden’s new tax plan,...

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