The Cost of Keeping Companies in the United States – The New York Times

Brent Glover and Oliver Levin write in the New York Times:

In a recent paper, we look at 60 inversions by United States public companies dating back two decades, to when policy makers started to discourage companies from leaving the United States by requiring stockholders to pay capital gains taxes on their shares at the time of an inversion.Overall, taxable shareholders lost 1 percent to 3 percent on the value of their shares. This may sound small, but it amounts to around $6 billion in extra taxes for the shareholders. So while inversions reduce the corporate taxes collected by the Treasury, the extra taxes paid by shareholders offset that loss by about 40 percent.Fifteen percent to 20 percent of shareholders in the deals we studied were made worse off from inversion.

Source: The Cost of Keeping Companies in the United States – The New York Times

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