Goodbye, And Don’t Forget To Write
The Wall St. Journal tells us that 47 US Corporations have reincorporated overseas in the last 10 years, presumably to avoid paying taxes:
A summary released Monday by House Democrats says that 47 U.S. corporations have reincorporated overseas through so-called inversions in the last 10 years. That’s “far more than during the previous 20 years combined,” Democrats say. And there are about a dozen prospective inversion deals involving U.S. corporations looking to reincorporate overseas, according to the data.
The article continues to note that a legislative remedy is not proceeding well, and explains to us what might be motivating the exodus:
So far the legislation isn’t moving very quickly. Republicans and some Democrats say the proposed legislation is too narrow, and could make it even harder to fix the fundamental problems with the U.S. international tax system. Unlike almost all other developed countries, the U.S. still taxes multinationals on their global earnings; most countries tax only domestic earnings, for the most part. The U.S. rate of 35% also is now the highest in the developed world. Many other countries have cut their rates substantially to remain attractive for corporate headquarters.
Please name any US Corporation that actually pays the full 35% rate. I’ve got time.
For so many corporations, not only is the effective rate much, much lower, some pay no taxes at all (fair warning: PDF), and some actually end up having a negative effective tax rate and receive a nice, fat cheque from the IRS.
It’s just a suspicion, of course, but my guess is that regulation is the real issue. I’m sure that lax labor laws and environmental laws is driving a friendly relocation industry. A good corporate tax attorney can come up with a tax loophole, but it is harder to deflect the physical evidence of the pollution around your plant and/or the injured workers.
It’s having lax regulation is what Texas is using to try to bring industry there, after all. Rick Perry tells us about it all the time.
fantagor July 7th, 2014 at 5:19 pm
The system that keeps them afloat resides in the USA, not a PO Box in the Bahamas. By starving the US government, they will eventually kill what sustains their bottom line, the American consumer.
Tengrain July 7th, 2014 at 6:53 pm
Oh, they’ve long ago left the American comsumer market. We have approximately 360M people with a dying middle class. The emerging middle class in Asia is 3.5B people. These new consumers need everything, and the multinationals have moved on to service them.
Rgds,
Tengrain
tiredoftea July 7th, 2014 at 8:46 pm
Not any longer. Worldwide consumer markets, China and other third world countries especially, are growing faster than the U.S. Their tax policies are friendlier to corporations, their regulatory policies are friendlier to corporations, their wage policies are friendlier to corporations. Think of a great big worldwide playground slide that ends in a huge pile of shit, that’s international corporate capitalism.
mea_mark July 7th, 2014 at 6:00 pm
If corporations are people and these corporations become foreigners, then they should be treated like foreigners. They should not be allowed to spend any money in American politics, donations to super pacs or candidates should be banned and strictly enforced. If you are leaving America, stay out of our politics.
tiredoftea July 7th, 2014 at 10:14 pm
I’ll get Congress right on that.
mmaynard119 July 8th, 2014 at 1:33 pm
Does this mean Willard is a corporation because he’s not a people?
Anomaly 100 July 7th, 2014 at 6:50 pm
They couldn’t take the WSJ with them?
Obewon July 7th, 2014 at 10:39 pm
Cheney’s Halliburton & Top GOP Donor Eric Prince’s BlackWater/Xe/TripleCanopy reincorporated in UAE Dubai to eliminate their extradition and prison sentences. Buh-Bye!
fancypants July 10th, 2014 at 4:01 pm
For example, Walgreens, the largest drugstore chain in the United States with more than 8,700 drugstores spread across the nation, is on the verge of moving its corporate headquarters to Switzerland as part of a merger with Alliance Boots, the European drugstore chain.
Founded in Chicago in 1901, with current headquarters in the nearby suburb of Deerfield, Walgreens is about as American as apple pie — or your Main Street druggist.
Even if it becomes a Swiss corporation, Walgreens will remain your Main Street druggist. It just won’t pay nearly as much in US taxes.
Joseph E. Stiglitz Calls for Fair Taxes for All
Which means the rest of us will have to make up the difference. Walgreens’ morph into a Swiss corporation will cost you and me and every other American taxpayer about $4 billion over five years, according to an analysis by Americans for Tax Fairness.
The tax dodge likewise means more money for Walgreens’ investors and top executives. Which is why its large investors — including Goldman Sachs — have been pushing for it.
—————————————————————————————-
Wall street wins another battle with the tax payers HOORAY !
fancypants July 10th, 2014 at 4:01 pm
For example, Walgreens, the largest drugstore chain in the United States with more than 8,700 drugstores spread across the nation, is on the verge of moving its corporate headquarters to Switzerland as part of a merger with Alliance Boots, the European drugstore chain.
Founded in Chicago in 1901, with current headquarters in the nearby suburb of Deerfield, Walgreens is about as American as apple pie — or your Main Street druggist.
Even if it becomes a Swiss corporation, Walgreens will remain your Main Street druggist. It just won’t pay nearly as much in US taxes.
Joseph E. Stiglitz Calls for Fair Taxes for All
Which means the rest of us will have to make up the difference. Walgreens’ morph into a Swiss corporation will cost you and me and every other American taxpayer about $4 billion over five years, according to an analysis by Americans for Tax Fairness.
The tax dodge likewise means more money for Walgreens’ investors and top executives. Which is why its large investors — including Goldman Sachs — have been pushing for it.
—————————————————————————————-
Wall street wins another battle with the tax payers HOORAY !
fancypants July 10th, 2014 at 4:01 pm
For example, Walgreens, the largest drugstore chain in the United States with more than 8,700 drugstores spread across the nation, is on the verge of moving its corporate headquarters to Switzerland as part of a merger with Alliance Boots, the European drugstore chain.
Founded in Chicago in 1901, with current headquarters in the nearby suburb of Deerfield, Walgreens is about as American as apple pie — or your Main Street druggist.
Even if it becomes a Swiss corporation, Walgreens will remain your Main Street druggist. It just won’t pay nearly as much in US taxes.
Joseph E. Stiglitz Calls for Fair Taxes for All
Which means the rest of us will have to make up the difference. Walgreens’ morph into a Swiss corporation will cost you and me and every other American taxpayer about $4 billion over five years, according to an analysis by Americans for Tax Fairness.
The tax dodge likewise means more money for Walgreens’ investors and top executives. Which is why its large investors — including Goldman Sachs — have been pushing for it.
—————————————————————————————-
Wall street wins another battle with the tax payers HOORAY !
fancypants July 10th, 2014 at 4:01 pm
For example, Walgreens, the largest drugstore chain in the United States with more than 8,700 drugstores spread across the nation, is on the verge of moving its corporate headquarters to Switzerland as part of a merger with Alliance Boots, the European drugstore chain.
Founded in Chicago in 1901, with current headquarters in the nearby suburb of Deerfield, Walgreens is about as American as apple pie — or your Main Street druggist.
Even if it becomes a Swiss corporation, Walgreens will remain your Main Street druggist. It just won’t pay nearly as much in US taxes.
Joseph E. Stiglitz Calls for Fair Taxes for All
Which means the rest of us will have to make up the difference. Walgreens’ morph into a Swiss corporation will cost you and me and every other American taxpayer about $4 billion over five years, according to an analysis by Americans for Tax Fairness.
The tax dodge likewise means more money for Walgreens’ investors and top executives. Which is why its large investors — including Goldman Sachs — have been pushing for it.
—————————————————————————————-
Wall street wins another battle with the tax payers HOORAY !
Red Eye Robot August 8th, 2014 at 4:22 am
In 2009 the Obama admin treasury dept spent $1.7 BILLION taxpayer dollars to help $20 billion dollar Delphi corp.re-incorporate in Great Britain saving Delphi $110 million a year in federal taxes.