Skip to comments.U.S. Firms Move Abroad to Cut Taxes
Posted on 08/29/2012 11:44:36 AM PDT by SeekAndFind
More big U.S. companies are reincorporating abroad despite a 2004 federal law that sought to curb the practice. One big reason: Taxes.
Companies cite various reasons for moving, including expanding their operations and their geographic reach. But tax bills remain a primary concern. A few cite worries that U.S. taxes will rise in the future, especially if Washington revamps the tax code next year to shrink the federal budget deficit.
"We want to be closer to where our clients are," says David Prosperi, a spokesman for risk manager Aon AON +0.03% plc, which relocated to the U.K. in April.
Aon has told analysts it expects to reduce its tax rate, which averaged 28% over the past five years, by five percentage points over time, which could boost profits by about $100 million annually.
Since 2009, at least 10 U.S. public companies have moved their incorporation address abroad or announced plans to do so, including six in the last year or so, according to a Wall Street Journal analysis of company filings and statements. That's up from just a handful from 2004 through 2008.
The companies that have moved recently include manufacturer Eaton Corp., ETN, oil firms Ensco International Inc. ESV, and Rowan Cos., RDC, as well as a spinoff of Sara Lee Corp. called D.E. Master Blenders 1753.
Eaton, a 101-year-old Cleveland-based maker of components and electrical equipment, announced in May that it would acquire Cooper Industries PLC, another electrical-equipment maker that had moved to Bermuda in 2002 and then to Ireland in 2009. It plans to maintain factories, offices and other operations in the U.S. while moving its place of incorporationfor nowto the office of an Irish law firm in downtown Dublin.
When Eaton announced the deal, it emphasized the synergies the two companies would generate.
(Excerpt) Read more at online.wsj.com ...
It can mean only one thing.
Those companies are racist companies.
Companies are moving from the USA to the UK to get a break on taxes? Have things really gotten that bad here?
Typical libs; they believe the economy is static and will never change. And they believe the “corporate money tree” will bloom forever, in unlimited quantity. All they have to do is go pick it....
No, you're not. You are going to point to what you want them to change, taxes.
You're not going to mention labor rates, because if America raises it's import tariffs back to historical norms, your decision to relocate just turned out to be stupid.
U.S. corporations pay taxes on their worldwide earnings. The U.S. is one of the few industrialized countries in the world to insist that they do so. Google “corporate inversion” for more insight.
The list, Ping
Let me know if you would like to be on or off the ping list
Apples and oranges. And the notion that we should raise taxes on ourselves via tariffs, because our corporate tax code is FUBAR is beyond silly. It’s dangerous.
You betcha. A company that puts money before country is Unamerican. Note to WSJ - it's the cheap labor, stupid but then again they already know that.
Only if you equate higher taxes with a higher level of patriotism. U.S. corporations already pay some of the highest taxes in the world. By your standard, they might be more patriotic than you.
We need to do a few simple things to truly compete and keep US companies here. We need Americans to get a grip on the labor issue, which is slowly happening, and realize that wages must go down some (and the bottom 50% need to pay some darned taxes). Not everyone needs a big screen tv. Unions must be eliminated once and for all, and we are getting there slowly but surely. And then we need to cut the corporate tax rates. This is why Obama must be defeated, so we can get the labor force moving again and adjust expectations according to the global market. It’s tough but it’s simply necessary. Sadly, only conservatives seem to understand reality.
I can’t blame them. They are in business to make money providing goods and services NOT to pay taxes to support the freeloading, daytime TV watchers.
” D.E. Master Blenders 1753.”
Dowe Egbert coffee and tea.
It isn’t just taxes, it is monstrous REGULATION...a huge hidden tax.