The Traderszone Network

Published in TZ Latest News 23 September, 2014 by The TZ Newswire Staff

Why tax reform won’t bring back billions in cash held abroad

Treasury Secretary Jacob Lew announced Monday night that he would begin cracking down on American companies that avoid taxes by moving their headquarters overseas. Lew will stop these so-called “tax inversions” by making it more difficult for smaller foreign companies to take over larger U.S. companies, and by making “hopscotch” loans—where U.S. companies get around paying taxes on dividends by distributing earnings as a loan to a foreign company—taxable.