The tax politics of the Medtronic deal

The deal to buy Irish medical device manufacturer Covidien would effectively make Fridley-based Medtronic a foreign company. That would lower Medtronic's taxes and offer it access to it's own overseas cash without paying U.S. taxes.

As Steven Davidoff reported in The New York Times Monday, the deal is carefully written to allow Medtronic to pull out if Congress changes the laws around the "inversion tax loophole" that makes the deal so potentially lucrative.

Is Congress actually close to doing that? Davidoff joins The Daily Circuit to talk about the loophole and the political effort to close it.