Monday, July 28, 2014
Wall Street Journal, Mark Cuban on Tax Inversions: If You Move Overseas, I’m Selling Your Stock:
Billionaire investor Mark Cuban isn’t a fan of tax inversions.
In a series of tweets and interviews, the owner of the Dallas Mavericks said companies that buy a company to take advantage of another country’s lower tax rate are “gaming the system.” If the trend continues, he expects taxes in the U.S. will increase across the board.
He suggested investors should consider selling shares of companies that utilize the tactic. If I own stock in your company and you move offshore for tax reasons I’m selling your stock,” Mr. Cuban said Friday morning on Twitter “There are enough investment choices here.” In a subsequent tweet, he added: “When companies move off shore to save on taxes, you and I make up the tax shortfall elsewhere sell those stocks and they won’t move.”