The recent spate of tax inversions into the UK has got US politicians complaining bitterly, calling for an overhaul in legislation to prevent further inversions and to introduce retroactive legislation that would net those multinationals who have successfully changed their tax address. Plainly, inversions are increasingly seen as a problem to the US because they represent a loss of tax revenue. The UK itself has emerged as an 'inversion haven' following dramatic overhaul of its tax code which reduced corporation tax from 28% in 2010 to the current 21 %; this is set to go down further to 20% in 2015, alongside other attractive cuts and reliefs for business. The drift away from the US, scornfully referred to as 'corporate deserters' in the American press, has even got the attention of president Barack Obama, who has given the green light for his administration to tighten up existing laws to arrest the trend of those wanting to escape the punitive 35% corporation tax rate, targeting counterpart businesses in the UK where the tax rate is set to drop to just 20% next year.
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