Reply #6: This story leaves out a huge detail [View All]

[ProSense]

The 2002 ban only applied to Homeland Security. It was done through the appropriations process. The ban was expanded this year to apply to the entire federal government:

U.S. PIRG letter to the Senate Appropriations Subcommittee on Financial Services and General Government

In 2002, Congress took the first step in enacting legislation to address corporate inverters that seek government contracts with the Homeland Security Act. The law, passed overwhelmingly in the House and Senate, prohibited the Department of Homeland Security from contracting with inverted corporations. Most recently, with the Omnibus Appropriations Act of 2009, Congress broadened this restriction to apply government-wide.

It's clearly a loophole, but given that the ban was expanded this year to apply government-wide, there must be reason it's being considered.

The bill hasn't reached the Senate floor yet so there is time to get the facts.