Skip to content
Subscriber Only

Senate’s Levin Seeks Limits on Corporate Inversion Deals

Senator Carl Levin, a Democrat from Michigan and chairman of the Senate Permanent Subcommittee on Investigations, makes an opening statement during a hearing in Washington, D.C. on July 22, 2014.

Senator Carl Levin, a Democrat from Michigan and chairman of the Senate Permanent Subcommittee on Investigations, makes an opening statement during a hearing in Washington, D.C. on July 22, 2014.

Photographer: Andrew Harrer/Bloomberg

U.S. companies would face strict limits on mergers in which they move their tax address outside the U.S. under a bill proposed today by Senator Carl Levin, a Michigan Democrat.

Under Levin’s plan, U.S. companies trying to buy a foreign company and relocate their headquarters to a lower-tax country would have to ensure that shareholders of the non-U.S. company own at least 50 percent of the combined company, up from 20 percent now. The plan, which lacks Republican support, is unlikely to become law any time soon.