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Tax-Based Inversions: What is at Stake?

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By Gordon Gray, American Action Forum:

Pfizer’s potential acquisition of AstraZeneca, and its subsequent plans to become a U.K.–domiciled concern has drawn considerable attention to the idea of “inversions” and the role of U.S. international tax rules. The current tax code incentivizes corporate flight from America and the tax minimization strategy outlined by Pfizer.  In the absence of meaningful tax reform, the U.S. is at risk of losing 15 percent, or $988 billion, of the equity represented by major U.S.–based industries.

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