President Barack Obama attacked companies that use cross-border mergers to escape U.S. taxes, accusing them of being “corporate deserters who renounce their citizenship to shield profits.”
In remarks at a technical college in Los Angeles yesterday, the president called for a new “economic patriotism” from companies. He also decried those that use corporate inversions to benefit economically by being in the U.S. while adding to the tax burden of middle-income families.
“This Democratic push on inversions is entirely about midterm election politics,” Guggenheim Securities LLC said in a market commentary to clients today. “There is likely to be a lot of noise as Democrats believe this issue will resonate with voters in the midterm elections.”