Apr 6, 2016
President Barack Obama is urging Congress to pass legislation that would prevent U.S.-based firms from moving their headquarters overseas to avoid paying federal taxes. The president’s calls came after the Treasury Department introduced new rules against inversions, transactions in which U.S. companies take a foreign address, by merging with a smaller overseas firm. The new rules were narrowly crafted to take away the incentive for pharmaceutical giant Pfizer to merge with Ireland’s Botox-maker Allergan and prevent other U.S. companies from similar deals. The rule change worked because Pfizer announced it cancelled the $160 billion merger.