Truth Before Dishonor

I would rather be right than popular

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.

2 Responses to “All Multi-Nationals Should Invert Away From US”

  1. It’s interesting that the one blogger (so far) who likes this article just so happens to not be able to actually, you know, read. How do I know? That blogger is a loud and proud … wait for it … “Progressive”. That’s right, someone who sputters about police brutality against blacks (I refuse to use the politically correct term, because any qualifier before “correct” proves it’s incorrect), financial discrimination against the sexes, class warfare, etc, ad pukeum, by definition cannot read anything based on intellect. So no, that person did not like my article. That person liked what he or she thought my article would be about, without actually, you know, reading it. But that’s par for the course with the Socialists of the world. And yes, so-called Progressives are indeed Socialists.

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  2. […] John Hitchcock on Truth Before Dishonor: All Multi-Nationals Should Invert Away From US […]

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