Listen to "Reality Check with Ben Swann" on Spreaker.

Obama Administration takes action to prohibit companies from leaving America

Must Read

Pentagon’s “COVID Detecting Microchip” For Under Your Skin?

Pentagon's "COVID Detecting Microchip" For Under Your Skin? - powered by ise.media A new report from 60 Minutes includes an...

Life Insurance Unchanged By COVID?

Life Insurance Unchanged By COVID? - powered by ise.media Bob Burnett explains how life insurance rates are telling a very...

Nicaragua Never Required Masks or Lockdowns and Crushed the Virus-Script

Nicaragua Never Required Masks or Lockdowns and Crushed the Virus-Script - powered by ise.media The country of Nicaragua never instituted...
Michael Lotfihttp://brandfireconsulting.com
Michael Lotfi is a Persian-American political analyst and adviser living in Nashville, Tennessee. Lotfi is the founder and CEO of BrandFire Consulting LLC. The firm specializes in public and private technology centered brand development, lead generation, data aggregation, online fundraising, social media, advertising, content generation, public relations, constituency management systems, print and more. Lotfi is the former executive state director for the Tennessee Tenth Amendment Center, a think-tank focused on restraining federal overreach. Lotfi graduated with top honors from Belmont University, a private Christian university located in Nashville, Tennessee.

WASHINGTON D.C. – September 24, 2014 – On Monday, the IRS and the Treasury took actions to reduce “and when possible, stop” tax inversions from occurring within the United States. Tax inversions have increasingly become an issue within the U.S. economy over the past several years, leading many central planners to seek action against free market options available to companies faced with incrementally higher tax demands.

An economic environment created by the presidency of Barack Obama has encouraged many U.S. companies to seek tax inversions, a process by which an American based business purchases a foreign firm in order to relocate its headquarters to a lower-tax nation while maintaining its original operations.

Treasury Secretary Jack Lew said the Obama Administration is seeking congressional action before taking further action. Lew stated, “These first, targeted steps make substantial progress in constraining the creative techniques used to avoid U.S. taxes, both in terms of meaningfully reducing the economic benefits of inversions after the fact, and when possible, stopping them altogether”. 

- Newsletter -

According to the Treasury, Monday’s actions were designed to ensure that that economic incentives spurring the increase in tax inversions become less accessible and less appealing to companies. The Treasury, alongside the IRS, issued a formal notice declaring that the U.S. government “would prevent U.S. companies from accessing a foreign subsidiary’s earnings while deferring U.S. taxes through what it called ‘hopscotch’ loans.”

Among other measures, Monday’s notice would also prevent companies from transferring assets between the ‘controlled foreign corporation’ and the parent company, making is impossible for these businesses to avoid paying U.S. taxes on their overseas endeavors. Additionally, the new notice prevents a U.S. company from being able to restructure, and therefore access a foreign subsidiary’s earnings tax-free.

Finally, the Treasury said its actions would make it increasingly difficult for a U.S. entity to invert by fortifying the requirement that the previous owners of the U.S. company own less than 80% of the new combined business in such transactions.

A spokesman for the House Speaker John Boehner responded to the measures stating, “the answer is to simplify and reform our broken tax code to bring jobs home-and help grow our economy and create even more American jobs.”

These measures will take effect on all business deals not closed by this coming Monday.

Who is John Galt?

Follow Michael Lotfi on Facebook & Twitter.

- Advertisement -

Featrued Sponsors

video

Texas Files Lawsuit Asks SCOTUS To Block 4 States From Participating in Electoral College

Texas Files Lawsuit Asks SCOTUS To Block 4 States From Participating in Electoral College - powered by ise.media Check out our sponsor Kim Daly and...

Unstoppable Domains

Uncensorable blockchain domains. Every domain purchase supports Ben Swann and Truth in Media

Holland Center

Holland Center is a day treatment program and medical clinic for children with autism.
- Advertisement -

Latest News

video

Pentagon’s “COVID Detecting Microchip” For Under Your Skin?

Pentagon's "COVID Detecting Microchip" For Under Your Skin? - powered by ise.media A new report from 60 Minutes includes an...
video

Life Insurance Unchanged By COVID?

Life Insurance Unchanged By COVID? - powered by ise.media Bob Burnett explains how life insurance rates are telling a very different story about the COVID...
video

Nicaragua Never Required Masks or Lockdowns and Crushed the Virus-Script

Nicaragua Never Required Masks or Lockdowns and Crushed the Virus-Script - powered by ise.media The country of Nicaragua never instituted a lockdown, never required masks,...
video

Report: 80% of Women /Girls From Mexico To US, Raped Along The Way

Report: 80% of Women /Girls From Mexico To US, Raped Along The Way - powered by ise.media The crisis at the U.S. border continues. Nearly...
video

Lockdowns Caused 100 Percent Increase In Child and Teen Suicide?

Lockdowns Caused 100 Percent Increase In Child and Teen Suicide? - powered by ise.media Children are 10 times more likely to die of suicide than...
- Advertisement -

More Articles Like This