It's Time To Invert Inversions.

       I'm sure you've heard of INVERSIONS. They're those companies who merge with a foreign company from a low tax country, for the purpose of lowering their taxes. They buy or merge with or are bought by a foreign company, then relocate their headquarters to that low tax country. It's a cheap trick tax dodge that's robbing America of hundreds of millions of dollars. Of course the company doesn't change it's operation at all. It is only interested in paying lower taxes and they don't care what it means to America or American taxpayers.
       Well, now there's a new opportunity for investors who also don't care about America or American taxpayers. An online investment broker is offering a package of Inversion targets to invest in. And in case you wanted to know, this online brokerage, Motif Investing, is backed by J.P. Morgan. What they do is pick companies who are likely to be targets of this inversion business. Then they lump these stock offerings into groups and offer them as a "basket" presumably a basket full of opportunity, according to the N.Y. Times this morning.
       Now, I guess there's nothing wrong with making a profit off other people, in fact it's just good business you might say. What I find so unpleasant is that in a way it's encouraging these companies to take part. After all, by investing in these potential inversion targets you increase their value. You are, in effect, legitimizing the idea of skipping out on America.
       So if you don't care too much about your own country, then these options are a backdoor way to potentially make a killing. And after all, these investors will have to pay taxes on any profits they might make, at capital gains tax rates. So ya see, there's nothing illegal here, either by the inversion companies or the investors, but maybe it should be. Maybe it should be illegal to take part in any inversion by any American company unless they pay a 50% tax on any funds held anywhere in the world and a 50% one time tax on the value of all holdings anywhere in the world before they can invert. And as for investors, a special tax rate on any inversion related company on any income from any such investments of 50%. That would put a screeching halt to all inversions without having to make them illegal.
       Ya see? There's always a silver lining if you look hard enough and if you're willing to give them an old fashioned one two punch.