Inversion conversion: Obama's hypocrisy
President Obama suddenly is upset that a growing number of U.S. businesses are using American tax laws to lower their tax liability through tax inversions. That is, domestic businesses are acquired by or merged with foreign companies and reincorporate abroad, thus paying less in taxes. Mylan Inc. of Cecil, the generic pharmaceutical giant, did just that recently.
Mr. Obama calls utilizing the law to lessen the corporate tax load (one of the highest in the world) “unpatriotic” and has vowed to intercede, without Congress if necessary and, of course, in violation of the Constitution.
But, and as Bloomberg reports, his administration expressly endorsed the practice in 2009 when it bailed out Delphi Automotive, the parts-maker that supplies the also-bailed-out General Motors. Delphi was given $1.7 billion in public money and reincorporated in England to lessen the American tax bite — with the Treasury Department's full knowledge. And that's even though its own IRS was insisting, and continues to insist (improperly, given the law), that Delphi should be taxed as an American corporation.
Putting a wet finger to populism's wind five years ago — “Save the auto industry!” — the Obama administration endorsed the practice. Five years later, that newly wetted and wind-swept finger has picked up on populism's latest pap — “Punish these tax evaders!”
So much for convictions.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Work’s the thing
- Orphan sinkhole
- Confidentiality & carnage: Something has to give
- ‘Canary in a coal mine’: The SSDI dilemma
- Pittsburgh Tuesday takes
- Mon-Yough Laurels & Lances
- Greensburg Tuesday takes
- Mon-Yough Tuesday takes
- A school choice victory: Follow the child
- The student-loan balloon
- The visa flap: A prevailing stench