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) and its acquisition of Irish-headquartered, UK-registered Shire (SHPG). 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.
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