Comment on The Motley Fool: What's a tax inversion?

The Motley Fool: What's a tax inversion?

A tax inversion happens when a company becomes a subsidiary of another company in another country, in order to take advantage of more favorable tax rules in that country. Many American companies have done this in recent years, and the Obama administration has taken steps to reduce its appeal as an option. Medtronic was originally based in Minnesota, but it's now calling Covidien's home base of Ireland its home, and enjoying Ireland's lower corporate tax rates. General Motors (Mary Barra), Mylan (Heather Bresch), Xerox (Ursula Burns), Ventas (Debra Cafaro), Reynolds American (Susan Cameron), Oracle (Safra Catz, co-CEO), Duke Energy (Lynn Good), Lockheed Martin (Marillyn Hewson), DuPont (Ellen Kullman), HCP (Lauralee Martin), Gannett (Gracia Martore), Yahoo (Marissa Mayer), Avon (Sheri McCoy), TJX (Carol Meyrowitz), KeyCorp (Beth Mooney), Campbell Soup (Denise Morrison), PepsiCo (Indra Nooyi), General Dynamics (Phebe Novakovic), Sempra Energy (Debra Reed), Ross Stores (Barbara Rentler), IBM (Virginia Rometty), Mondelez International (Irene Rosenfeld) and Hewlett-Packard (Meg Whitman). A recent study found that the 80 Fortune 1000 companies led by women between 2002 and 2014 produced equity gains of more than three times that of the S&P 500.FOOL'S SCHOOL The solo 401(k) plan also offers a Roth option, working like a Roth IRA, where you contribute post-tax money, claim no deduction up front, but eventually withdraw funds tax-free in retirement.

 

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