Tax considerations are pushing more companies to reincorporate abroad, the Wall Street Journal reports. At least 10 public companies have reincorporated abroad since 2009. Eaton Corp., which moved its incorporation to Ireland in 2009, said that the move will save it $160 million per year because of tax benefits. As companies seek lower tax rates abroad, competitors feel the need to do the same.
The U.S. has one of the highest corporate tax rates at 35%, which both presidential candidates have proposed lowering. The tax code also taxes profits earned abroad, in contrast to most developed countries.