Overview
Members of Congress Urge Treasury to Take Further Actions on Inversions: Today, Representatives Rosa DeLauro (D-CT), Lloyd Doggett (D-TX), and Sandy Levin (D-MI) and Senators Dick Durbin (D-IL), Jack Reed (D-RI), Sheldon Whitehouse (D-RI), and Elizabeth Warren (D-MA) sent a letter to Treasury Secretary Lew urging Treasury to take further action against inversions by “annually publishing, to the extent permissible, a list of inverted companies, and using [Treasury’s] executive authority to curb earnings stripping and other perverse incentives [companies] have to invert.” The letter urges Treasury to issue guidance under section 385 to “recharacterize debt as equity for inverted corporations, which would eliminate the ability for the domestic subsidiary to deduct interest payments and remove a strong incentive to invert.”