Lobbying Showdown in Washington as European Companies Seek to Avoid Tax Crackdown

By Evan Abrams

Recent political pressure has led the Obama Administration to begin a crackdown on so-called “inversions,” where American companies move their headquarters abroad for tax reasons. However, as the Financial Times reports, several European companies are now worried about the implications for their American subsidiaries. Many of these companies have launched aggressive lobbying campaigns in Washington, seeking to mitigate any harm from the new rules. They warn that new rules and legislation could deter future European investment in the United States.