Mr. Caplan discusses current trend in M&A activity involving U.S. multinationals and companies from lower tax jurisdictions.
Willkie partner Gordon Caplan recently appeared on two news programs to discuss the current trend in M&A activity involving tax strategies to limit exposure to higher U.S. corporate taxes. On April 29, he appeared on the CNBC morning show “Squawk Box” and told hosts Joe Kernen, Becky Quick and Andrew Ross Sorkin that there are two issues at play. The first is that the U.S. corporate tax rate of 35% is higher than most industrialized countries. The second aspect, which Mr. Caplan explained has gone somewhat underreported, is that the U.S., unlike most industrialized nations, taxes worldwide earnings. He discussed how this “repatriation issue” drives U.S. multinationals to seek to keep earnings outside of the U.S. Mr. Caplan emphasized that the tax code currently creates strong incentives for U.S. companies to utilize tax strategies to avoid higher U.S. corporate taxes. On May, 1 he was interviewed on Bloomberg TV’s “Taking Stock” to discuss these issues.
Watch Gordon Caplan on CNBC’s "Squawk Box."
Watch Gordon Caplan on Bloomberg TV's "Taking Stock."