Tax System Spurs Overseas Purchases of U.S. Firms, Report Says
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The tax system encourages foreign companies to purchase U.S. companies, according to a study released Wednesday by the Business Roundtable, a group of chief executive officers.
Had the U.S. cut its corporate tax rate to 25 percent from 35 percent, U.S. companies would have acquired $590 billion in cross-border assets over the past decade rather than losing $179 billion, according to the study. It was conducted by Ernst & Young LLP.