Treasury explores moves to block tax inversions

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While urging congressional action, the Treasury Department is exploring ways to unilaterally block a surge of U.S. companies shifting their headquarters overseas in search of major tax savings.

The new escalation of the White House battle against corporate tax inversions came as a key congressional Democrat circulated a draft of potential legislation that could make it more difficult for U.S. companies to re-incorporate overseas.

Separately, U.S. drugstore giant Walgreens has ended its exploration into moving its headquarters to Europe in an effort to save billions of dollars in federal taxes, according to several media reports.

REPORTS: Walgreens won't tap tax loophole
The Treasury action takes aim at a trend that has seen 47 U.S.companies move their tax-reporting address abroad during the last decade, according to Congressional Research Service data. Roughly 12 more are pursuing or researching potential shifts, including Illinois-based pharmaceutical giant Medtronic.

President Obama has criticized the exodus, contending the departing firms are "gaming the system" while eroding federal tax collections and forcing other American taxpayers to make up the shortfall.

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