Senators Charles Schumer (D-NY) and Richard Durbin (D-IL) introduced a bill earlier today aimed at combating corporate inversions.  The bill, “Corporate Inverters Earnings Stripping Reform Act of 2014,” focuses on earnings stripping, a process by which US subsidiaries can take tax deductions on interest payments from loans from a foreign parent.  Specifically, the bill eliminates the interest expense deduction carryforward and excess limitation carryforward, repeals the debt-to-equity safe harbor, reduces the permitted net interest expense from 50 percent to 25 percent of the subsidiary’s adjusted taxable income, and requires companies that have already inverted to get IRS preapproval annually on terms of related-party transactions occurring within the 10-year period after an inversion.