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The Business, Entrepreneurship & Tax Law Review

Authors

Brian Thompson

Abstract

The United States government grapples with the right solution to deter corporations from inverting abroad. A corporation’s decision to invert is made in the interest of its shareholders, including many who are United States citizens. However, many have called inverting corporations unpatriotic, traders, and cheaters. These labels shift the blame to an easy scapegoat. In order to quell this recent phenomenon, the United States government must move beyond rhetoric and reevaluate the cause of the exodus. Politicians have no one to blame but themselves and the outdated corporate policy they have left in place. Heavyhanded government policies to punish corporations for doing what is best for their shareholders is not only counterproductive but also contrary to corporate duties imposed by existing law. The government must move in the opposite direction. The government must disregard punitive policies and reform the law to facilitate a competitive corporate market. The answer to global corporate competitiveness is less government interference. The only way to protect the United States’ corporate base is for the government to facilitate a corporate friendly environment otherwise the corporate evacuation will persist.

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