The rapid evolution of corporate inversions for U.S.-based multinationals over the past 20 years has been attributed to all of the following EXCEPT:
A) lack of foreign tax credits.
B) relatively high U.S. corporate tax rate.
C) U.S. lack of global competitiveness.
D) the worldwide tax principles.

Question

Quizplus · Accepted Answer

Lack of foreign tax credits is not a reason for the rapid evolution of corporate inversions, as US multinationals can claim foreign tax credits on their US tax returns. The other choices, including the relatively high US corporate tax rate, US lack of global competitiveness, and the worldwide tax principles, have all been cited as reasons for the increase in corporate inversions.

The Rapid Evolution of Corporate Inversions for U