Bloomberg reports that Speaker of the House, John Boehner, and David Camp, whose committee reportedly controls tax policy, both own shares in a company called Medtronic. Medtronic announced plans to take over an Irish company called Covidien Plc.
This is what folks on business news channels call a “tax inversion.” It allows a U.S. company to become a foreign company via a takeover to potentially save money on taxes.From the article:
“Earlier this month, in an article he wrote for Politico, Boehner urged Obama not to “act unilaterally” to prevent inversions, saying it would exceed his executive authority.”
Boehner and Camp delegate trading stocks to others… so that apparently makes things okay for reasons we’ll make fun of below. But for now, the stocks are up, leading to at a minimum paper profits.
3 Questions That Arise From This Story
1. You delegate your trading to others, so that makes it okay… because you can’t delegate others to sell your stocks in this perceived conflict-of-interest situation? We’re just trying to follow the attempt at logic used here.
2. Can America trade John Boehner to Ireland for Bono? Maybe then something would get done in Congress. Or at least a good rendition of “With or Without You” could be performed, with lyrics changed to mention gridlock will continue with or without the majority of Congress.
3. Given Americans’ consistent unhappiness with Congress, will there be an inversion of incumbents by getting voted out of office in the upcoming election? Pundits seem to think no, which arguably makes Congress like that boyfriend you keep calling “lazy” but will never break up with.
Categories: Mildly Bad News