Corporate inversions - Hatch outlines possible way forward for bipartisan inversion legislation 

August 8:  Ranking Senate Republican on the Senate Finance Committee, Orrin Hatch, in an “OpEd” opinion piece in the Washington Post today addressed the issue of tax inversions.

Hatch reiterated his view that the best way for Congress to address inversions is through tax reform. He acknowledged however that legislation might be necessary outside of an overhaul of the tax code:

…absent such reform, which I acknowledge is unlikely in the short term, there may be a way to address inversions in a bipartisan manner, if we follow four simple principles.

Hatch then outlined the four principals he believes are necessary to address in any anti-inversion legislation.

  1. The legislation must be a “bridge” to reforming the existing tax code.
  2. The legislation must not be retroactive.
  3. The proposal must move the United States closer to a territorial system of taxation for multinationals.
  4. The proposal must be revenue neutral.

Hatch did not further elaborate on what specific proposals he might consider that would achieve each of these four principals.

In late July 2014, the Senate Finance Committee addressed corporate inversions in a hearing that covered a broad range of international tax topics. Senator Hatch indicated a similar view in that hearing. Read TaxNewsFlash-United States

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