• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Leadershipcorporate inversions

Congress Won’t Crack Down on Inversions Any Time Soon

By
Tory Newmyer
Tory Newmyer
and
Steven T. Dennis
Steven T. Dennis
Down Arrow Button Icon
By
Tory Newmyer
Tory Newmyer
and
Steven T. Dennis
Steven T. Dennis
Down Arrow Button Icon
November 19, 2015, 8:12 PM ET
Photo courtesy: Mark Wilson
Add Fortune on Google for similar content.

As Pfizer reportedly closes in on a deal that would enable it to relocate to low-tax Ireland, the U.S. Treasury on Thursday unveiled new rules aimed at thwarting just those sorts of tax-dodging transactions.

It’s unclear what impact, if any, the rules would have on Pfizer’s $150 billion proposed tie-up with Allegran PLC. But leading Members of Congress from both parties for now appear to agree on a pair of points: First, that only legislative action can conclusively stem the tide of these so-called corporate inversions; and second, that lawmakers won’t be rallying behind any such solution soon.

The problem, in short, is that most Congressional Republicans — who control both sides of the Capitol — don’t favor a narrow fix aimed at clipping the wings of companies looking to relocate. They view that approach as all-stick, no-carrot, when what’s needed instead is a comprehensive revamp of the corporate tax code that lowers rates sufficiently that companies won’t want to leave. And Republicans don’t expect to make progress on that sort of wholesale tax reform until the next administration.

“The only way you’re going to get that problem solved is to bring down corporate tax rates and make them competitive with the rest of the world,” Sen. Orrin Hatch (R-Utah), chairman of the tax-writing Senate Finance Committee, told Fortune. “We know how to do it, we just need a different president in order to do it.”

Some prominent Democrats agree that lawmakers should only address inversions in the context of a tax-code rewrite. Hatch’s Democratic counterpoint on the Finance panel, Sen. Ron Wyden (D-Ore.), called inversions “a virus” that’s “growing and it is mutating. And the reality is you are not going to be able to fix this with a Band-Aid. It’s going to take fundamental reform.”

There was some bipartisan interest over the summer in tackling a piece of the tax puzzle — bringing home the stash of corporate profits already sitting overseas — as a means to fund domestic infrastructure investments. Those talks included then-House Ways and Means Chairman Paul Ryan (R-Wisc.), who’s since ascended to Speaker, but never amounted to an agreement.

Now, a measure to extend a raft of corporate tax breaks that expire at the end of the year offers a long-shot opportunity for a provision targeting inversions to hitch a ride into law. Though Wyden expressed a preference for dealing with the issue in a broader reform package, he also floated it as a potential bargaining chip in the pending negotiations with Republicans over how many of the expiring corporate breaks are extended permanently. “We’ll have an opportunity… to get into that,” he said. “Obviously we’re looking for everything we can to respond to this, because it is draining the tax base of our country.”

The possibility remains remote.

Rep. Kevin Brady (R-Texas), newly installed atop the House Ways and Means Committee, in a statement said the new Treasury rules would only make American companies “more attractive takeover targets for foreign corporations” by locking them in “an even more uncompetitive tax system.” Instead, he said, policymakers should redouble their efforts to rewrite the code. But one of his colleagues — Rep. Scott Garrett (R-N.J.), a senior member of the House Budget Committee — underlined that that reform is hardly imminent. “We’re wrapping up this year,” he said. “It’s not going to happen now.”

About the Authors
By Tory Newmyer
See full bioRight Arrow Button Icon
By Steven T. Dennis
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Emily Blunt is worth $80 million and just pocketed $15 million for her latest film—but she once wanted to be a Spanish translator for the UN
SuccessCareers
Emily Blunt is worth $80 million and just pocketed $15 million for her latest film—but she once wanted to be a Spanish translator for the UN
By Orianna Rosa RoyleJuly 2, 2026
2 hours ago
Trump’s 927-page disclosure is just a normal Tuesday for direct indexing and crypto wealth managers
InvestingDonald Trump
Trump’s 927-page disclosure is just a normal Tuesday for direct indexing and crypto wealth managers
By Catherina GioinoJuly 1, 2026
11 hours ago
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
NewslettersCIO Intelligence
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
By John KellJuly 1, 2026
16 hours ago
U.S. Polo Assn. CEO J. Michael Prince
SuccessThe Promotion Playbook
U.S. Polo Assn. CEO was told he wasn’t right for a promotion—so he ‘outworked’ anyone else who wanted the job for 6 months straight
By Orianna Rosa RoyleJuly 1, 2026
18 hours ago
Nikesh Arora, chief executive officer at Palo Alto Networks
SuccessJobs
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut
By Emma BurleighJuly 1, 2026
18 hours ago
DHL plane being refuelled at airport by man in high-vis jacket
EuropeAviation
The Iran conflict saw jet fuel prices soar—when you use 1.88 million tonnes a year, how you respond really matters (just ask DHL)
By Sam ForsdickJuly 1, 2026
20 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
1 day ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
24 hours ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
20 hours ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.