AP Photo/Tony Dejak
Mark Cuban isn't a fan of tax inversions, either.
Last night, President Obama spoke with CNBC's Steve Liesman, and their first topic of conversation was the issue of tax inversions, or mergers where U.S.-based companies acquire foreign companies and move their tax base overseas to enjoy lower rates.
Obama said this strategy, among other things, "undermines people's confidence in how companies are thinking about their responsibilities to the country as a whole."
Cuban took his rhetoric a step further: he said he's selling stock in companies that move for tax reasons.
On Twitter this morning, Cuban fired off a series of tweets about how companies that move their tax base overseas to avoid paying taxes force existing taxpayers to make it up elsewhere.
If I own stock in your company and you move offshore for tax reasons I'm selling your stock. There are enough investment choices here— Mark Cuban (@mcuban) July 25, 2014
If you talk to me as a shareholder and ask me to accept a higher PE so you can save jobs I'm open to it. The risk doesn't leave the system— Mark Cuban (@mcuban) July 25, 2014
. @pointsnfigures no it doesn't. Shareholder value should increase my net worth. Reduced tax receipts get paid by me and you elsewhere— Mark Cuban (@mcuban) July 25, 2014
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— Mark Cuban (@mcuban) July 25, 2014
Look at your portfolio holistically.A corp move may push up the stock. it may push up your taxes Taxes r forever. #costdontleavethesystem— Mark Cuban (@mcuban) July 25, 2014
Cuban is one of the most outspoken and influential business voices around, and his comments are certain to get notice.
The chances that these comments spur action in Congress, which is where any move to limit tax inversions would come from, are probably remote.
But the more people who are outspoken against tax inversions, the harder it might be for Congress and corporations to maintain the status quo.
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