Truth Before Dishonor

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Posts Tagged ‘corporate tax’

All Multi-Nationals Should Invert Away From US

Posted by John Hitchcock on 2014/08/28

If you are a multi-national corporation headquartered in X country, you pay that country’s corporate tax for the business you do there and you pay the corporate tax in each other country for the business you do there with the exception of one industrialized country. If you are headquartered in the industrialized world’s highest corporate tax country, not only do you pay that country’s highest in the industrialized world for the business you do there but you also pay that country’s highest in the industrialized world for business you do anywhere else. You do get a tax credit for paying taxes elsewhere, but you also still pay taxes in that country for business you do in other countries.

Now, why would any fiscally responsible corporation spend more than double its by-nation required corporate taxes if it could just as easily cut it down to the actual rate of said country? If Canada has a 15 percent corporate tax rate (it does), then why would a corporation pay the offending country’s 35 percent corporate tax on business done in Canada, just because the business is headquartered in that offending country? It makes no fiscal sense whatsoever. Especially when it is possible to work the laws to divest yourself of insane tax requirements for doing business elsewhere in the world.

That’s exactly what Burger King (owned in a very large part by a Brazilian) did. (And I have a major issue with Burger King’s rainbow whoppers, but that’s beside the point here.)

Meanwhile, Forbes reported three days ago on the prospective merger and said:

Burger King’s majority owner, the Brazilian private-equity firm 3G Capital, would hold the majority of shares in the combined company, their statement said.

These Brazilians need to get patriotic and pay their absurdly high American tax rates.

See, Burger King’s majority owner, a Brazilian company, did what it took to get out of the outrageously high taxes the US put on it. That’s right. The United States has the industrialized world’s highest corporate tax, and is also the only nation in the industrialized world to force its outrageous taxes on business done in other countries.

Never mind Michelle Obama will never allow Burger King to sell its product in American schools, and would rather Burger King ceased to exist, the Loony Left are all up in arms about a business deciding it’s not a good idea to overpay their taxes.

Posted in economics, food, Law, Liberal, Over-regulation, Philosophy, politics, Socialists, Tax | Tagged: , , , | 2 Comments »

Dying California Cannibalizes Itself

Posted by John Hitchcock on 2012/11/07

I have written multiple articles chronicling California’s Leftism-caused death throes. Yesterday, Californians, in their great wisdom, have decided to cannibalize themselves, (HT Patterico) devouring whatever healthy parts they had left. As businesses and working families have been fleeing the state for healthier locales, Californians have just finished voting to raise income taxes on the most productive of what’s left, raise corporate tax rates for the businesses which haven’t yet fled, raise sales taxes. Californians have also voted not to curtail Public Employee Union power, that power that has already caused multiple California cities to declare bankruptcy. What does this mean for the once-great state of California? It means more business closures. It means more flight of the producers out of the state. It means less tax revenue for the state. It means higher unemployment, higher poverty rates, more personal and corporate bankruptcies. It means more cities going bankrupt.

And this time, it also means fewer places to run to. Because the next four years will be Sheol for all of the US, as Obama exacts revenge on everyone who stood in his Socialist way (meaning Conservative states and Conservative people) as he unleashes his bureaucrats to write all manner of growth-destroying laws, free of the need to even consult the US Congress.

The next four years are going to be a very bumpy ride for all of us, but never so bumpy as the ride Californians, Illinoisians, Marylanders, New Yorkers are going to take.

Welcome to the Socialist caused Sheol, folks.

Posted in economics, Liberal, Obama, Over-regulation, Personal Responsibility, politically correct, politics, Socialists, society, Tax | Tagged: , , , , , | Comments Off

 
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