NEW YORK (TheStreet) -- There is growing concern about corporate inversion -- when American corporations attempt to avoid U.S. tax rates, the highest in the world, by acquiring foreign companies and then relocating their headquarters overseas. The problem is that the discussion about corporate inversions is more connected with the elections this fall than it is with the tax and location issue itself.
The latest example of inversion is U.S. drug maker AbbVie (ABBV - Get Report) and its acquisition of Irish-headquartered, UK-registered Shire (SHPG - Get Report). AbbVie will move its headquarters outside the U.S. to take advantage of Shire's location and tax situation.
The problem is that inversion is a real concern, but it is also seen as an effort by the White House to create a campaign issue that will help Democratic candidates in the fall.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts