AstraZeneca Plc

Stop inversions now [Editorial]

If your roof starts leaking live a sieve, it's not only prudent to get a new roof but to install a short-term fix — buckets to catch the water, perhaps, or a tarp — before your house is ruined. So should it be with so-called tax inversions by U.S. corporations. The long-term answer may be tax reform, but right now the leaks have to be plugged.

What is a tax inversion? It's when a big U.S.-based multinational buys a company off-shore and then ships its own corporate headquarters there to avoid paying U.S. federal and state corporate taxes. One of the most striking examples was attempted earlier this year when Pfizer proposed moving its headquarters to Great Britain as part of its...