Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comKey Contacts
Back
Billionaire investor and Dallas Mavericks owner Mark Cuban has a message for U.S. multinational corporations considering an inversion.
“If I own stock in your company and you move offshore for tax reasons I’m selling your stock,” Cuban said in a series of tweets. “There are enough investment choices out there.”
Corporate inversions refer to the practice of a large U.S.-based company acquiring a smaller, foreign company, merging and declaring corporate residence in the latter country. Usually, this move allows the new company to enjoy a significantly lower tax rate compared to the U.S. rate of 35 percent – one of the highest in the developed world. In recent years, there has been a spate of tax inversions as politicians promise to crack down on the practice.
In a CNBC interview, Cuban clarified his point, insinuating that the tax cost to wealthy investors of allowing inversions would, in aggregate, cost them more than the gains seen from holding shares in inverted companies.
“Evaluate [the] big picture,” Cuban told investors via CNBC. “By not selling your stock, does that encourage other companies to do the same thing, which means even larger tax shortfalls, which it costs us even more over the long-term, which means your net-worth is going to go down?”
In another interview with CNBC, President Barack Obama acknowledged that corporate inversions are still technically within companies’ legal right, but insisted that the practice is un-American, according to America’s Markets.
“I think most people would say: ‘If you’re doing business here, if you’re basically still an American country, but you’re simply changing your mailing address to avoid paying taxes, then you’re really not doing right by the country and by the American people,'” Obama told the news source.
Considering the senate elections draw near, the topic of corporate tax inversions is becoming talked about more and more through Washington. As tax attorneys in the metropolitan area, James F. McDonough and I have written about this topic at considerable length. Here are some of our other posts about tax inversion:
- Inversions To Be An Election Hot-Button Issue
- What Corporate Inversions Are Telling Us (And What Washington Refuses To Hear)
- Treasury Secretary urges Congress to end inversions
- New Congressional Report Highlights Tax Inversions
- Medtronic the Latest Company to Propose Tax Inversion
- Report Shows How Much Walgreens Stands To Gain with Inversion
- Levin: Bill limiting corporate inversions later this week
- Senators consider closing tax inversion loophole
- Practices: Tax and Trusts & Estates, Corporate Tax Planning, International Law & Trade
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.