Inverting American industry: how Federal anti inversion legislation will eventually drive every multinational offshore and into foreign controlled hands

The nation's leaders have been doing lots of things good for foreign business lately.

In reality, anti-inversion legislation, at least as currently proposed, is likely to turn U.S.-based multinationals into hunted prey, selling out to foreign rivals. The proposed legislation basically draws up a roadmap for activist investors and foreign companies, showing them how to get access to the overseas cash of U.S. companies by buying them up and moving their headquarters out of the country.

How does that happen? Proponents of anti-corporate-inversion legislation are worried that the tax benefits of moving the headquarters of a U.S. multinational overseas are compelling–so compelling that if they allow a few companies to do it, a tidal wave will follow.

So to stop the flood, the legislation would require that any company that wants to “invert” show at least 50% foreign ownership in order to escape the U.S. tax system. That’s intended to stop companies such as Medtronic, which is planning to acquire the Irish company Covidien and move its headquarters to Ireland, while maintaining its existing operations in the U.S.

Catch that?  What the legislation does is place a premium on being foreign because enough foreign investors will allow an American company to do an inversion and capture huge tax savings which redound to the investors.  Large foreign institutional investors are likely to clean up as more and more American corporations become foreign controlled for tax reasons.  So no US multinationals and no headquarters in the US is the true goal of this oh so typical Federal legislation

Maroons, what a bunch of Maroons.