Tax Inversion Quotes
Inversion is an elaborate tax loophole whereby a large American corporation buys a tiny corporation in a country that has very low or no corporate income taxes. Once they own it, they Transfer the stock of the American Corporation to the small foreign corporation. Now the American corporation becomes a subsidiary of the foreign corporation whose headquarters is no longer in America. Then they move most of the profits to the “parent” corporation as most companies do. The difference is that the foreign corporation pays little or no taxes, and the American “Subsidiary” pays much less taxes than they used to pay. The have “inverted”—some say perverted--the ownership relationship. They do the same business that they did before in America, use America’s government services just as before, has America educate their workers as before, but they do not pay their fair share of taxes as before.
