'Inversions': Latest Ploy to Blow Up the Tax Code

A once-obscure tax dodge known as a corporate "inversion" is turning the debate over U.S. tax reform upside down.

In an inversion, a U.S. company sets up or buys another company in a country with a lower corporate tax rate and then calls the new country home—thereby dodging U.S. taxes it would otherwise have had to pay.