In Washington, short-sighted policies proposed for political messaging purposes often eclipse substantive dialogue. That is exactly what we are seeing as congressional Democrats and the Obama administration play election-year politics with the growing challenge of corporate inversions.
Over the past few months, many companies have responded to our overly burdensome corporate tax system by re-domiciling their headquarters overseas. Such moves leave the United States with a smaller tax base that results in many billions of dollars in lost revenue. Clearly, this is a cause for concern, and, unfortunately, it is unlikely to go away anytime soon.
Despite this grim reality, however, every Democratic proposal offered so far to deter such action has been purely political. What's more, these proposals contain punitive and retroactive provisions that would exacerbate the problem.