- Playing politics August 7
President Barack Obama has made headlines recently with his opposition to tax inversions, a process by which American corporations acquire a small foreign subsidiary and then "re-headquarter" their company abroad, even while the bulk of sales or operations remain in the U.S. This gambit allows them to lower their tax bill.
But it turns out that in 2009, the president's auto bailout program spent $1.7 billion in tax dollars on a small car maker, Delphi Automotive, that underwent this very inversion process. The company relocated to the U.K. to lower its U.S. tax bill by more than $100 million annually.
Obama has called companies that practice inversion "corporate deserters," saying in California last month that regardless of whether the process is legal, it's wrong: "You don't get to choose the tax rate you pay. These companies shouldn't either."
The New York Times reported on Tuesday that the administration is considering some sort of executive action to put a stop to tax inversions, but Obama said on Wednesday that he "never [has] the green light" to act without Congress.- - Bonnie Kristian
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- How academia's liberal bias is killing social science
- Diagnosing the Home Alone burglars' injuries: A professional weighs in
- 43 TV shows to watch in 2014
- How to be the most productive person in your office — and still get home by 5:30 p.m.
- How Wall Street is chipping away at reform
- Why Pakistan won't hunt down the terrorists within its borders
- Are there dogs in heaven? Let's hope not.
- 10 things you need to know today: December 21, 2014
- How I lost all my money
- You should be furious about Hollywood's gutless retreat on The Interview
Subscribe to the Week