BREAKING: Obama to take executive actions to make it more difficult for corporations to dodge taxes [View all]

[Cali_Democrat]

Treasury takes steps to discourage offshore tax-shifting inversions

The Obama administration on Monday announced long-awaited executive actions to try to discourage companies from reincorporating abroad to reduce their U.S. taxes.

The steps -- technical revisions to the tax code -- will "substantially reduce the economic benefits" of firms that try so-called corporate tax inversions in the future, Treasury Secretary Jacob J. Lew said.

But he and President Obama continued to call on Congress to address the issue either through a broad overhaul of corporate taxes or targeted legislation, which would be more effective in curtailing a maneuver that has become more popular among corporations seeking to avoid the high U.S. tax rate.

"We’ve recently seen a few large corporations announce plans to exploit this loophole, undercutting businesses that act responsibly and leaving the middle class to pay the bill, and I’m glad that Secretary Lew is exploring additional actions to help reverse this trend," Obama said.

http://www.latimes.com/business/la-fi-corporate-tax-inversion-treasury-lew-20140922-story.html