Huffpost Business

Obama Calls Out American Companies For 'Gaming The System'

Posted: Updated:

In a CNBC interview on Wednesday, President Barack Obama took aim at corporate inversions -- deals where a U.S. company keeps its operations at home, but moves its formal address overseas to avoid paying taxes.

"Companies thrive in the United States in part because they benefit from the best university system in the world, the best infrastructure," Obama said. "There are a whole range of benefits that have helped to build companies, create value, create profits. For you to continue to benefit from that entire architecture that helps you thrive, but move your technical address simply to avoid paying taxes, is neither fair, nor is it something that's going to be good for the country over the long term."

Watch Obama's comments in the video above.

Corporate inversions are legal, and companies say they engage in them because the U.S. tax rate is higher than in other countries. But inversions open up a host of ways to permanently limit, or even eliminate, any American taxes paid by companies that operate in the United States.

"You're just gaming the system," Obama said Wednesday. "You are an American company."

Also on HuffPost:

Close
Obama Pointing Fingers
of
Share
Tweet
Advertisement
Share this
close
Current Slide

Suggest a correction

Around the Web

Obama presses to close corporate tax loophole 'inversions' | Reuters

Obama Urges Quick Action on 'Inversions' - WSJ

Some Senate Democrats Wary as Obama Fights Tax Inversions

Obama Administration Presses for Retroactive Legislation on Tax Inversions

Obama Seeks To Clamp Down On Corporate Inversions, Retroactive Legislation ...

US Stands to Lose Billions From Corporate Tax Inversions

Obama to Make Campaign Pitch on Corporate Tax Avoidance

Obama to call for tax 'loophole' closure

CEOs to Obama: Tax reform, not an inversion Band-Aid