I've been laying low on the inversion issue that pops up fromtime to time when global firms make a deal to merge—such as the bigdaddies Johnson Controls and TycoInternational, who are set to become the latest Americancompany to move abroad in search of tax savings. Inversions let UScompanies lower their tax rates over time by giving them ways toshift profit out of the US and move cash easily from low-taxjurisdictions back to shareholders.

According to an article in the Wall Street Journal, the merger,the first big deal of 2016 underscores the snowball effect ofinversions. As deals like Johnson Controls and Tyco happen in aparticular industry, they enable more—and bigger—companies tofollow suit because US rules require foreign targets to be of acertain size relative to their buyers. In this distressing electionseason, the political rhetoric is going to reach a fever pitch overthe inversion issue.

Let's face facts, the root of this issue is America's archaicand regressive tax laws that levy the highest corporate tax rate inthe world among major economies. The pork barrel politicians chargethat companies like Johnson Controls and Tyco are un-American. Hogwash, they are doing nothing illegal and only acting for the goodof their shareholders.