How the Medtronic deal with Covidien puts spotlight on corporate taxes

Medtromic's 'Rising Man' symbol
The "Rising Man" symbol stands in front of the Fridley, Minn., based Medtronic.
Jim Mone/Associated Press

Medtronic's plans to buy an Ireland-based competitor are raising questions about tax policy. The Minnesota-based medical device company on Sunday announced a $43 billion agreement to buy Covidien, which specializes in surgical equipment.

Medtronic says Covidien deal keeps 1,000 jobs in Minnesota
Medtronic's Irish deal reopens Minnesota tax debate

Medtronic officials say the deal was driven by a strategic fit between the two companies. But the acquisition could also bring tax benefits for the company. The combined firms will be headquartered in Ireland, which is known for having a relatively low corporate tax rate. MPR's Cathy Wurzer spoke with Vanessa Houlder, tax correspondent for the Financial Times, who's written about Ireland's role in what's called tax "inversion."

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