--> Means we are going to see some deals coming faster or no deals anymore....look at Shire & Glaxo
Obama Says Treasury Department to Act to Curb Tax Inversions
President Doesn't Want Trend of U.S. Firms Incorporating Overseas to Avoid U.S. Taxes to Grow
Mr. Obama's comments, at a news conference concluding a summit with African leaders, came as the Treasury begins a review of existing rules and regulations to assess potential moves to halt or limit so-called inversions. A number of U.S. companies have taken advantage of the tax structure in recent months, and the Obama administration has called on Congress to prohibit such behavior. Congress appears unlikely to act on the matter soon, and Mr. Obama said the Treasury would have to act instead.
"We don't want to see this trend grow," Mr. Obama said.
In his remarks, Mr. Obama said companies that don't use inversions are "proud to be American," are "responsible actors," and are "proud to pay their fair share."
He said the Treasury was examining existing laws and rules to see what changes "can at least discourage" these inversions.
Several tax attorneys have said a number of companies are weighing options in response to the new stance by the White House. Firms could decide to expedite their tax restructuring before new rules are in place, or they could pause to avoid becoming a political punching bag.
"It's not fair," Mr. Obama said. "It's not right. The lost revenue to Treasury means it has to be made up" by other taxpayers.
A number of Republicans have also criticized the spate of inversions, but they have said the best way to address the practice is through a comprehensive overhaul of the tax code instead of a piecemeal change.
House Budget Committee Chairman Paul Ryan (R., Wis.) has said that some of the legislative changes the White House has proposed to address inversions could have the unintended consequence of leading more foreign companies to take over U.S. firms.