Corporate Inversion

Corporate inversion is a strategy in which a corporation (usually one located in the United States) merges with a foreign corporation and then shifts its income from its original country.  The usual
Philosophy News image
Taxes (Photo credit: Tax Credits) Corporate inversion is a strategy in which a corporation (usually one located in the United States) merges with a foreign corporation and then shifts its income from its original country.  The usual purpose of this strategy is to reduce taxes and this is done by shifting the income from the higher-tax country to the lower tax country. While this strategy has been used for quite some time, it started attracting media attention in the summer of 2014. Those who defend tax inversion point to the obvious fact that it is currently legal. As such, the strategy is exempt from legal criticism as long as it is legal. Of course, the fact that something is legal does not entail that it is morally right or even that it is pragmatically prudent. A quick glance at history will show an abundance of practices that were legal (such as slavery) yet morally repugnant. A similar look back will also reveal laws that turned out to be bad ideas on pragmatic grounds. Thus,. . .

Continue reading . . .

News source: Talking Philosophy

blog comments powered by Disqus