Biden Tax Plan Targets Inversions to Keep Them From Coming Back

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, ...