Another Corporate Giant Is Leaving the U.S. – What This Means for You
Nick Giambruno
GoldSeek.com
Thursday, 4 February 2016
These “worst in the developed world” tax laws are clearly hurting the global competitiveness of U.S. companies.
Oppressive U.S. corporate tax liabilities make doing business similar to trying to swim in a lead jacket. So it’s no surprise that an increasing number of productive people and companies are trying to rip off that lead jacket so they can stay afloat.
At this point, it’s more than just a trickle. It’s an increasing trend.
Putting the Beast on a Diet
Over the past couple of years, dozens of high-profile U.S. companies have moved abroad to lower their corporate income tax rate. No surprise, this makes them more globally competitive.
Medical manufacturer Medtronic moved to Ireland.
Telecommunications giant Liberty Global moved to the UK.
DE Master Blenders—the tea and coffee arm of Sara Lee—moved to the Netherlands.
Omnicom Group, the largest U.S. advertising firm, also moved to the Netherlands.
Burger King moved to Canada.
And these are just a few of the most prominent companies breaking the shackles.
The strategy these companies use is called an inversion. It’s where a U.S. company merges with a foreign company in a country with lower corporate taxes and reincorporates there.
Meddling politicians and the mainstream media like to howl and shriek about inversions. They say the practice is “unpatriotic” or “un-American.” That’s nonsense. The fact is, inversions are perfectly legal. Nothing in the current incarnation of the U.S. Tax Code prohibits them.
Chuck Grassley, a Republican senator from Iowa has said, “These expatriations aren’t illegal. But they’re sure immoral.”
I beg to differ.
Why would anyone give the thieving bureaucrats in DC a penny more than they legally have to?
The Rest…HERE
