MONEY inversions

WATCH: Stephen Colbert and Jon Stewart Slam “Corporate Deserters” Who Flee U.S. Taxes

The late night duo are the newest celebrities to speak out against corporate inversions.

Last night the Comedy Central dream team of Jon Stewart and Stephen Colbert each took a moment on their respective shows to attack the growing number of American corporations moving their official addresses abroad to escape U.S. taxes.

The specific kind of tax flight the duo is talking about is known as an inversion, and these maneuvers have become all the rage in recent months. As MONEY’s Pat Regnier explains, an inversion is when a U.S. company merges with a (typically smaller) foreign company in tax-friendly country. The U.S. company then claims it is now based in the foreign company’s nation and thus avoids paying U.S. taxes while continuing to enjoy many benefits of essentially remaining an American company.

“It’s like me adopting an African child, and then claiming myself as his dependent,” quipped Colbert.

This practice has been widely condemned as unpatriotic and unfair to American taxpayers who will be stuck footing the bill if the government needs to replace corporate tax dollars with new sources of revenue. The anti-inversion chorus has so far included public figures ranging from President Obama to entrepreneur and Dallas Mavericks owner Mark Cuban, who recently advised his Twitter followers to divest from inversion-happy corporations.

On Wednesday, Stewart and Colbert added their own two cents, with Colbert bringing on Fortune’s Allan Sloan, author of a recent seminal article on inversions, to talk about the problem.

The Colbert Report
Get More: Colbert Report Full Episodes,The Colbert Report on Facebook,Video Archive

The Daily Show
Get More: Daily Show Full Episodes,The Daily Show on Facebook,Daily Show Video Archive

The Colbert Report
Get More: Colbert Report Full Episodes,The Colbert Report on Facebook,Video Archive

Tap to read full story

Your browser is out of date. Please update your browser at


Dear MONEY Reader,

As a regular visitor to, we are sure you enjoy all the great journalism created by our editors and reporters. Great journalism has great value, and it costs money to make it. One of the main ways we cover our costs is through advertising.

The use of software that blocks ads limits our ability to provide you with the journalism you enjoy. Consider turning your Ad Blocker off so that we can continue to provide the world class journalism you have become accustomed to.

The MONEY Team