New ‘exit tax’ proposal

WASHINGTON: Democratic presidential front-runner Hillary Clinton on Wednesday will unveil a proposal for a new ‘exit tax’ aimed at cracking down on corporate inversions, a practice that permits US firms to merge with corporations overseas to lower their tax bill. The new tax would be part of a broader effort to target what experts say is roughly $2 trillion in profits US companies are hoarding abroad to reduce their taxes. Clinton will propose spending the revenue raised by the new tax to boost manufacturing jobs in the US, campaign aides said. They spoke on condition of anonymity ahead of the official campaign announcement.