Some call the practice of moving a company abroad to avoid taxes "corporate inversion," while others deem these businesses "expatriate corporations." Whichever term you prefer, the fact is that several successful American companies have moved their headquarters overseas in recent years to avoid hefty U.S. taxes.
"We felt that American companies, based upon the tax laws that are written today, are clearly put at an economic disadvantage to foreign companies," said Victoria Guennewig, a spokeswoman for Cooper Industries, in defense of the company's relocation.
U.S. companies will surely continue to seek tax shelter in other countries, but only time will tell if they'll be able to get away with this scheme.
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