Tax Inversions on the Rise

[LeftofLeft]

The Burger King move to Canada is a paper process taking advantage of the US tax code so that they can shift to a lower-corporate tax rate country. At the same time, jobs are not being offshored nor are operations yet liberals are shitting themselves and demonizing Burger King and other companies like Medtronic that are doing this. Why is this a problem?

These companies are seeking to avoid higher taxes by shifting to another domicile where they won't pay as much. Why is that a problem? What is the difference in motivation and outcome between Burger King trying to do this vs. a Massachusetts Senator that parks his $7M yacht in Rhode Island to avoid paying $500k per year in Massachusetts taxes??

 

[Stephanie]

Like I said, instead of them calling their Dear leader asking him to LOWER the tax rates, they are going to boycott a hamburger

Obama wouldn't care if they took all the jobs with them if he did he would of already LOWERED TAXES FOR THEM

 

[Pogo]

The Burger King move to Canada is a paper process taking advantage of the US tax code so that they can shift to a lower-corporate tax rate country. At the same time, jobs are not being offshored nor are operations yet liberals are shitting themselves and demonizing Burger King and other companies like Medtronic that are doing this. Why is this a problem?

These companies are seeking to avoid higher taxes by shifting to another domicile where they won't pay as much. Why is that a problem? What is the difference in motivation and outcome between Burger King trying to do this vs. a Massachusetts Senator that parks his $7M yacht in Rhode Island to avoid paying $500k per year in Massachusetts taxes??

There's no evidence BK is doing any such thing. That's pure speculation, and has been hacked to death in several threads already (which were merged here). There isn't even any evidence that it will save them taxes.

If this were really their motive, why not move to a country with a tax rate lower than Canada? If that were the motive, why spend umpteen billions of dollars to merge with a huge corporation, taking on over 4600 stores, when all you'd have to do is go plunk down a few hundred Loonies on an office space in Missasauga?

Doesn't pass the smell test. On the contrary, they did say the operation would move to Canada as that would be the largest market of the combined company.

 

[EdwardBaiamonte]

Why is that a problem?

it not so much a problem as it is an obligation that management maximize value for shareholders.

Only our liberals are stupid enough to give managements a huge incentive to move off shore when we are already facing huge off shore competition from China and India.