Does Jack Lew listen to anybody outside the White House? We ask because nearly all of American business, most of Congress and some in his own Treasury Department hate his new business tax rule, but he rolls blithely on.
The Treasury Secretary presented his plan as a way to stop corporate inversions, in which companies use mergers to move their headquarters to lower-tax jurisdictions offshore. He wants to prevent “earnings stripping,” in which companies allegedly make loans from their overseas businesses to their U.S. subsidiaries to minimize taxes.
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