Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Lew Seeks Immediate Retroactive Law to Curb Inversions

Jacob Lew, U.S. Treasury secretary. Photographer: Jin Lee/Bloomberg
Jacob Lew, U.S. Treasury secretary. Photographer: Jin Lee/Bloomberg

July 15 (Bloomberg) -- Congress should immediately change the law to stop companies from avoiding U.S. taxes through inversion transactions, Treasury Secretary Jacob J. Lew said.

Any change should be retroactive to May 2014, Lew wrote in a letter to lawmakers, which is dated today and was obtained by Bloomberg News.

“We should prevent companies from effectively renouncing their citizenship to get out of paying taxes,” Lew wrote.

The pace of inversion deals has escalated in recent months, as companies such as Medtronic Inc. and Mylan Inc. have announced transactions that let them move their legal address outside the U.S.

In inversions, U.S.-based companies purchase a foreign company, then switch the legal address to take advantage of the foreign jurisdiction’s favorable tax rules.

Lew’s letter escalates the administration’s involvement in the issue. Congress, so far, has shown little willingness to rush to approve legislation.

The Obama administration has proposed making it effectively impossible for a U.S.-based company to purchase a smaller foreign competitor and take that other company’s address.

To contact the reporter on this story: Richard Rubin in Washington at

To contact the editors responsible for this story: Jodi Schneider at Justin Blum, Don Frederick

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.