In an article for The Telegraph regarding U.S. efforts to clamp down on tax “inversions,” PPI Chief Economic Strategist Michael Mandel is quoted on how such efforts might backfire:
Michael Mandel, chief economist at Progressive Policy Institute, the Washington think tank, said the new rulebook gives activist investors a “roadmap” that “is likely to turn US-based multinationals into hunted prey, selling out to foreign rivals”.
“The anti-inversion legislation does nothing to fix the underlying problem, which is the incredibly weird and broken US corporate tax system,” he said when the plans were first proposed.
“Instead, the legislation encourages activist investors and foreign companies to work together to make takeover bids for US multinationals with large amounts of cash outside the country. No company, no matter how large, would be safe.”
Read the entire story on The Telegraph
