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Overtaxed U.S. businesses are fleeing the country

Overtaxed U.S. businesses are fleeing the country

To remain competitive against punitive U.S. tax rates, companies have increasingly engaged in inversion where the U.S. company merges with a foreign company and moves their domicile to a foreign location enabling the company to take advantage of its lower tax rates. The latest example is Pfizer's $160 billion merger with Ireland's Allergan which will be the largest inversion ever and create the largest pharmaceutical company in the world.

For decades U.S. companies have reinvested trillions of dollars of foreign profits that have been taxed locally in additional facilities outside the country rather than bring the funds back to U.S. where they will be taxed again.

U.S....

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