Obama Criticizes Inversions

Tax law needs to stop ‘corporate deserters,’ president says.

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.

Election Politics

“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.”

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