In the wake of an international mergers and acquisitions surge, the Obama Administration is urging lawmakers to pass legislation to limit inversions, in which U.S. companies buy a smaller competitor abroad and reincorporate overseas to save on taxes, The New York Times reports.
Treasury Secretary Jacob Lew sent out letters to lawmakers, asking them to quickly take action against this practice “to shut down the abuse of our tax system,” according to The Wall Street Journal. Lew also spoke at the CNBC Delivering Alpha conference on Wednesday, hinting at the issue as he pushed for legislation that would consist of several business reforms, one of which would bring tax levels of companies in the 20 percent range, The New York Times reports.
