U.S. Treasury Secretary Jacob Lew today wrote to the leaders of the congressional tax writing committees, and provided an update on the status of Treasury’s administrative actions concerning corporate inversions.
In a version of the letter being widely circulated, Secretary Lew wrote that, later this week, Treasury intends to issue additional “targeted guidance to deter and reduce further the economic benefits of corporate inversions.”
Secretary Lew also wrote:
"As you know, only legislation can decisively stop inversions. The Administration has been working with Congress for several years in an effort to reform our business tax system, make it simpler and more pro-growth, and remove the incentives that encourage companies to engage in inversions. In the interim, it is Treasury’s obligation to protect the tax base, and we have repeatedly stated that we will use all of our existing administrative tools to address this problem."
Secretary Lew reiterated that Treasury cannot stop inversions without new statutory authority. Read a version of the letter [PDF 671 KB] that was sent to the chairmen and ranking members of the Senate Finance and House Ways and Means committees.
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