Measures Introduced to Ban Contracts for Inverted Companies
A group of Democrats introduced legislation aimed at preventing federal contracts from going to companies that have undergone a corporate inversion to lower their tax bills. Both the House and Senate have similar versions that would bar contracts for companies that have acquired a smaller, foreign company located in a low-tax jurisdiction and redomiciled their headquarters there. Supporters of the bills state these companies take advantage of our education system, R&D incentives, skilled workers and infrastructure which are all paid by US taxpayers but “when the tax bill comes due they hide overseas.” Some pundits have stated the bill is unlikely to move forward as it lacks support from the Republican majorities but others dispute this.
