Inversion Increase

I've had enough of the falseness
Of a worn out relation
Enough of the jealousy
And the intoleration
--REO Speedwagon

Study examines the increase in US corporate inversions. Inversions are buyouts of a foreign entity in which the combined company moves to the foreign jurisdiction. A recent large example in the US is Pfizer's (PFE) merger with Ireland's Allergan.

The study indicates that US inversions have been on the rise since the late 1990s.

The primary motivator, of course, is the high US corporate tax rate which pushes 40%. That coupled with declining corporate tax rates in other parts of the world has many US corporations eyeing greener pastures.

An unfortunate consequence of higher taxes is capital flight.

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