More Companies Leave US For Lower Taxes

More Companies Leave US For Lower Taxes

It found 47 companies relocated to home bases overseas to take advantage of lower rates in the past 10 years through a merger process known as inversion.
More companies than ever are abandoning the US for nations with lower taxes.

That's according to a new analysis by the Congressional Research Service.

It found 47 companies relocated to home bases overseas to take advantage of lower rates in the past 10 years through a merger process known as inversion.

To qualify for the lower taxes, a company must do more than simply set up shop overseas and change its address.

It must first merge with a company in the lower-tax country.

Then it must do at least a quarter of its business overseas.

Or it must give the owners of the foreign company at least one-fifth ownership of the newly merged company.

Only 29 companies used the inversion process during the previous two decades.
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