Tres. Secretary Lew said a “broken” tax system is what prompts tax inversions; end Russia Sanctions
Treasury Secretary Jack Lew and Transportation Secretary Anthony Foxx spoke with Bloomberg Television’s Peter Cook today about investing in infrastructure, ending tax inversions and Russian sanctions.
Secretary Lew said a “broken” tax system is what prompts tax inversions:
“The right solution, if we cannot enact tax reform quickly enough, it’s for Congress to enact legislation that would close the door to these inversions. What I’ve said is that if Congress doesn’t act, we have to take the steps we can which will reduce the economic value of inversions. And I’m looking at options, as I said yesterday, we’re going to make decisions in the very near future. And it will not take away the need for legislation. But it will take a lot of the value out of these inversions, which I hope will change the decisions companies make.”
On the Russians threatening to shut down Russian airspace to sanctioning countries, Secretary Lew said:
“Russia is feeling the impact of sanctions in its economy and they’re not even denying the impact of it…The president’s been abundantly clear that if Russia withdraws its military support, it stops being engaged, recognizes Ukrainian sovereignty, we will be delighted to roll back sanctions. So Russia really controls the direction that this goes. They should make the decision to work this out diplomatically and resolve the situation. But they need to know that if they fail to do that, they’re going to face additional costs.”
source: Bloomberg Television