Funny how you can move so quickly on this issue of corporate inversions but not those of American expats. So long then
While they may not be breaking U.S. laws, many of these companies are navigating a loophole in America’s broken and dysfunctional tax code. And while their shareholders may secure a temporary win, workers, taxpayers and this country all lose. America’s tax base erodes at a cost of hundreds of millions of dollars in revenue, increasing the burden on other companies and individuals. America also loses good jobs, talent, investment, and the ability to compete on a global stage.
Legal or not, this loophole must be plugged. Current law requires that U.S. companies reincorporating overseas must ensure that at least 20% of their stock is owned by their new, foreign partner. As chairman of the Senate Finance Committee, I am committed to raising this floor to at least 50% for all inversions taking place from May 8, 2014, on. I don’t approach retroactivity in legislation lightly, but corporations must understand that they won’t profit from abandoning the U.S. (NOTE: Senator what you are proposing is a massive treaty override that Canada and other US Treaty partners should fight tooth and nail).
The question is how would this (compelling USCs or people perceived to be USCs) to travel only on a US passport. It may be difficult to compel governments to do this, particularly if they observe the Master Nationality Rule (e.g., individual is a British citizen, and leaves the UK travelling to France on their British passport). If they try to create a situation where a US passport is insisted upon, despite presentation of a valid EU passport to travel within the EU, then we’re getting into serious violations of freedom of movement for EU citizens, a cornerstone of the EU itself. I’m not saying that they couldn’t or won’t propose something like this, but it might be completely unenforceable.
@George
Further to my previous post, this would also mean the mayor of London (who may be future PM) could only travel on his US passport (yes British Brockers, the speculation is over. Boris Johnson has not renounced but has actually renewed his US passport)
http://www.bbc.co.uk/news/blogs-magazine-monitor-27371673)