Something, however, really needs to be done!
An article from the Financial Times this morning claims that "up to 25 more U.S. companies are considering relocating overseas to cut their tax bills." The argument is that this number is growing almost every day, as corporations believe that there is very little chance that the laws will be changed, so the time is ripe for further movements.
Corporations also seem to disregard the idea that the issue will have much impact on the elections this fall. The argument here is that voters do not see this as such a major issue because the companies that are impacted tend to be more "white collar," like pharmaceutical firms, not "blue collar," like car manufacturing firms.
But the issue is a real one.
Tax rates are distorting corporate decisions. They are causing companies to make relocation and buying decisions that they would not be making otherwise -- and this is not good.
When tax rates become so burdensome that the cause firms to leave their home country, something is wrong.
Corporate inversion should be an issue in the fall campaign. But it should not be an issue about how corporations, those "greedy bastards," are leaving the country and something needs to be done to force them to remain here.
The issue in the fall elections should be that politicians have raised corporate tax rates to a level that has given corporate managers very little choice but to move their headquarters to other countries. This is truly hurting America and American workers.
At the time of publication, the author held ABBV.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.