Skip to comments.Explosion Of Companies Using Deals To Move Out Of The US And Escape Taxes
Posted on 07/19/2014 6:57:34 AM PDT by Citizen Zed
One of the hottest strategies in corporate America right now is the use of so-called tax-inversion deals.
A US company buys a company headquartered in a country with lower taxes and then re-incorporates the entire company in that country to reduce the corporate tax bill.
A major tax inversion was announced yesterday, with Illinois-based pharmaceutical company AbbVie buying Irish-based Shire Pharmaceuticals. The entire company will be registered in Jersey, the island in the English Channel, which is famous for its low tax status.
(Excerpt) Read more at businessinsider.com.au ...
The result of Obamas plan to transform Amerika.
1. It ticks me off that somehow, the media paints these companies as “unpatriotic”. Clearly, these people have zero understanding about how free enterprise or markets or the fundamental principles of capitalism that permitted the entire industrial revolution actually work. The officers of these companies are beholden to NO ONE except their shareholders; they are compelled to produce the most profit to their shareholders by producing products that sell, by the most efficient possible means, and pay the least amount of taxes legally possible and minimizing other expenses while doing so. You could make a case that NOT doing this when legally and financially possible to do so is a failure of fiduciary responsibility.
2. Of the 50% that don’t want to leave Illinois, 20% of those are doing rather well off of the other 80%, so why leave? And 5% of that 50% are politicians or connected to one. So, the figure is not very surprising.
Corporate exec quandary:
“Hmm... stay here in the former “Land Of The Free” and let the Obama run socialist federal government suck the last bit of lifeblood from the company, or move to another country where they will appreciate the wealth and jobs we bring to them.”
That giant sucking sound (as Ross Perot used to say) it a giant vacuum cleaner sucking jobs out of the US of A.
go to the article, look at the chart. Its gone on for decades. i’ve been in te securities business for a long time. Escaping costs,whether they be taxes or wages or the cost of raw materials is a natural outgrowth of a profits above all mentality.
“our first duty is to the shareholders” is the oft repeated refrain. This is just a manifestation of that credo.
While i’m all for lower taxes we need to go much further than that. We need incentives for American companies to hire Americans. All the nonsense about people not being trained for the available jobs needs to be countered. What happened to on the job training? Apprentices? Pass incentives to make this the norm once more. Do four years of college equal a year of on the job training? Two years at most?
Its cost effective too. The up front tax breaks or other incentives to the companies are made up by the taxes the formerly unemployed will be paying. Off the government dole as well. Its both less money out and more in to offset.
This goes well beyond Obama as much of a fiscal disaster as he’s been.
A comprehensive deal to make doing business in America more profitable would be great. Giving case-by-case breaks to certain politically connected companies would be just adding salt to the wounds.
The next step is to move factories, jobs, technology, wealth
I guess they haven’t heard how exceptional the U.S. is.
In before ‘bring jobs back now. Just sayin’’
Hmmm. Corporations leaving the U.S. People clamoring to get in. What is the end result? Pure anarchy.
Taxes are not the problem: regulations by numerous alphabet agencies at all levels of government is the real problem.
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