corporate-seal

More than a dozen U.S. Senators are proposing legislation to prevent American companies from re-incorporating overseas to avoid taxes at home, reports the New York Times.

Read: Are young entrepreneurs giving up?

The bill, called the Stop Corporate Inversions Act of 2014, would put a moratorium on such moves for two years, giving the government time to write a permanent fix into the tax code.

The companies are moving to countries with lower tax rates and friendlier rules, including Britain, Ireland and the Netherlands, says the Times.

Under current rules, a company can move overseas if more than 20% of its stock is foreign-owned. This bill would increase that minimum to 50%.

Read more here.

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Originally published on Advisor.ca

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