Democrats Don't Want to Solve Tax Inversions

President Barack Obama made clear that corporate inversions are on his target list last week. Through what the president brands as an "economically unpatriotic tax loophole," firms use cross-border transactions to reduce their tax burden substantially by re-domiciling outside the United States. Although Obama threatened unilateral action to stop inversions, it is actually in his political interest to keep the issue alive rather than resolving it prior to Election Day.