Obama tax inversion rules may overstep authority: U.S. lawmaker

U.S. President Barack Obama delivers remarks on economy in the White House briefing room in WashingtonBy David Morgan WASHINGTON (Reuters) – President Barack Obama’s proposed rules to stop U.S. companies from reincorporating abroad, if only on paper, to avoid U.S. income taxes appear to overstep legal authority, a top Republican lawmaker said on Friday. Representative Kevin Brady said his staff is scrutinizing the rules, which were unveiled last week by the U.S. Treasury Department. The new rules, intended to discourage tax “inversions,” led to the collapse of U.S. drugmaker Pfizer Inc’s $160 billion acquisition of Ireland’s Allergan Plc. “We recognize there is broad discretion in some areas of that tax code,” Brady, a Texas Republican and chairman of the tax-writing House of Representatives Ways and Means Committee, said in a speech to the U.S. Chamber of Commerce.

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