The Obama administration is weighing plans to circumvent Congress and act on its own to curtail tax benefits for United States companies that relocate overseas to lower their tax bills, seeking to stanch a recent wave of so-called corporate inversions, Treasury Secretary Jacob J. Lew said on Tuesday.
Treasury Department officials are rushing to assemble a broad array of options that would “change the economics of inversions,” Mr. Lew said. Options are still being developed although no final decision has been made about whether to go forward with administrative action to strip away tax incentives for the deals.
Just like the American people, Obama has no respect for the Constitution or for separation of powers, and he is going to do anything that he thinks will be popular, safe in the knowledge that nobody will do anything about it.
But there is a solution for this action that does not rely on feckless Republicans to grow a spine. If Obama does this, corporations should refuse to pay the tax, and challenge it in court. The lesson of the Hobby Lobby case is that a corporation can stand up to the lawless administration and say: “No more.”
This is one of Obama’s craziest ideas, and that’s saying something. Taxation without representation, I remind the reader, was thought to be a legitimate reason to overthrow the government in revolutionary times.