Bloomberg BNA Quotes David Rosenbloom on the Exit Tax
H. David Rosenbloom discusses the idea of an exit tax with Bloomberg BNA. To view the complete article, please visit Bloomberg BNA's website (subscription required).
Excerpt taken from the article.
“If you start blocking acquisitions by foreigners, it almost gets to the point where people start worrying that you're blocking legitimate transactions,” said David Rosenbloom, a professor of international tax at New York University School of Law and a member of Caplin & Drysdale.
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“There are various reasons why people invert. One of them is to gain access to amounts of cash that have been accumulated offshore,” said Rosenbloom of NYU. “It would hit that kind of objective. But the more common objective, I think, is to lever up your U.S. operations, so you can do business in the U.S. as a foreign company, and get the benefits from that. If you take a company that didn't have much offshore build-up of cash—and there are plenty of those—they might not have much of an exit tax.”