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Politico’s Morning Tax: Liberals Call Out Obama on Inversions

Americans for Tax Fairness, in a paper to be released this afternoon, will urge the Obama administration to cut off tax benefits stemming from two recent mergers — Pfizer’s deal with Allergan, and Johnson Controls’ with Tyco. Four House Democrats — including Rosa DeLauro of Connecticut and Lloyd Doggett of Texas — will join the group in calling for more action out of the White House.  The group and the Democrats argue that Treasury made a mistake in allowing those two merged companies to keep tax credits, because they believe the mergers are inversions in spirit even if they don’t fit the technical definition of an inversion. The “non-inversion inversions,” as ATF calls them, could allow Johnson Controls to avoid taxes on about $8 billion in 2015 offshore profits, and Pfizer as much as $140 billion.

This piece appeared in POLITICO Morning Tax.