First: Then Icahn launches super PAC with $150M to take on tax reform Carl Icahn has a new activist target — Washington. The man best known for battling some of America's biggest companies is now taking his fight to the nation's capital. In a letter, released Wednesday and sent to several leading members of Congress, the billionaire investor says he's forming a super PAC and pledging $150 million of his own money to push for corporate tax reform. Icahn said he's targeting "inversions" which occur when a company changes its domicile, often outside the United States, to take advantage of lower tax rates elsewhere. "I believe my own commitment of $150 million to the PAC will be more than enough to make voters fully aware of the horrible consequences that will ensue if Congress fails to pass legislation immediately to stop these 'inversions,'" Icahn said. No one doubts inversions are horrific on the US economy. I am confused by the apparent about face? Or am I misreading these two articles?
I'm sure it never occurred to these anti-inversion advocates to make our corporate tax rate competitive internationally so companies would come here rather than v. Vs versa.
I don't disagree that we should make corporate taxes more rational in the U.S. But it's not going to solve the inversion problem. One of the 195 other countries in the world will always offer a better tax rate for offshore companies domiciled there than we can afford to offer to our own. After all, a .1% corporate tax rate is pure profit for you if you're Liberia and you manage to attract just one big corporation that would otherwise never even consider paying a dime in taxes to you to do an inversion.