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Clinton “exit tax” to take aim at companies’ inversion deals

WASHINGTON (Reuters) – U.S. Democratic presidential candidate Hillary Clinton will announce a planned crackdown on corporations that shift profits overseas, including a new “exit tax” against so-called inversion deals, her campaign said on Monday.

Clinton will call for spending the revenue raised by her proposed tax to boost manufacturing jobs in the United States, the Associated Press reported.

In an inversion deal, a company merges with a corporation in another country to lower its tax bill.

Pfizer Inc last month announced it would buy Allergan Plc in a deal worth $160 billion in part to slash its U.S. tax bill. The purchase — an example of a huge inversion deal — would create the world’s largest drugmaker and shift Pfizer’s headquarters to Ireland.

Clinton said in a statement at the time it would “leave U.S. taxpayers holding the bag.”

Clinton, the Democratic front-runner, will discuss her plan to deal with corporations shifting profits overseas at a campaign event in Iowa on Wednesday. On Tuesday, she is slated to discuss boosting manufacturing at another event in New Hampshire.

The two states hold the first party-nominating contests early next year for the November 2016 presidential election.

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