Schumer Anti-Inversion Tax Plan Could Reach Back to 1994

By Richard Rubin Sep 8, 2014 12:00 AM ET

A top Senate Democrat’s proposal to limit future deductions for companies that moved tax addresses out of the U.S. as many as 20 years ago would penalize dozens of so-called inversion deals.

The proposal by Charles Schumer of New York, the No. 3 leader in the Senate’s Democratic majority, would reduce the amount of deductible interest for inverted companies to 25 percent of U.S. taxable income from 50 percent, according to a draft obtained by Bloomberg News.

President Barack Obama has included a similar provision in his annual budgets, and this is the first time the language made it into a legislative proposal, Robert Willens, a New York-based independent consultant on corporate taxes, said by phone yesterday.

“It would have a very profound and immediate effect on these companies and would be very effective at reducing the attractiveness of inversions,” Willens said. “This is certainly a political statement.”

Schumer’s plan, which faces high hurdles in a deadlocked Congress, may become part of Democrats’ attempts to penalize companies that cut their tax bills with cross-border mergers and get added to their political strategy to blame Republicans.

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http://www.bloomberg.com/news/2014-09-07/schumer-draft-plan-against-inversions-could-reach-to-1994.html

This doesn't have a 'hope in hell' of passing in the House.