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If Walgreen Co. moves its HQ to Europe, blame Washington's tax failure
Chicago Tribune ^ | 04/26/2014

Posted on 04/26/2014 10:19:10 AM PDT by SeekAndFind

Edited on 04/26/2014 10:29:14 AM PDT by Admin Moderator. [history]

The Swiss cuckoo clock is ticking for Congress and White House to give tax reform more than lip service.

The Walgreen Co. drugstore chain got its start nearly a century ago in downstate Dixon, Ill., before moving its corporate headquarters to Chicago and eventually to north suburban Deerfield.


(Excerpt) Read more at articles.chicagotribune.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: hq; switzerland; taxes; walgreen

1 posted on 04/26/2014 10:19:10 AM PDT by SeekAndFind
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To: SeekAndFind

Here’s what’s happening folks...

There is a big tax advantage if Walgreen becomes a Swiss company. The U.S. imposes “worldwide taxation,” which means American-based companies not only pay tax on income earned at home but also are subject to tax on income earned overseas. Most other nations, including Switzerland, use “territorial taxation,” which is the common-sense approach of only taxing income earned inside national borders.

The bottom line is that Walgreen, if it becomes a Swiss company, no longer would have to pay tax to the IRS on income that is earned in other nations.

And here’s the problem ( Note to those who keep harping about bringing jobs back to America ).... Many people still think that taxpayers in the US economy’s productive sector should be treated as milk cows that exist solely to feed the Washington spending machine.

AS long as we have this mentality, expect more Walgreens to happen ( Heck, Apple and Google have already started the ball rolling ).


2 posted on 04/26/2014 10:22:33 AM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
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To: SeekAndFind

by0 and his leftists will consider it a victory over those dam* capitalists!


3 posted on 04/26/2014 10:24:26 AM PDT by GreyFriar ( Spearhead - 3rd Armored Division 75-78 & 83-87)
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To: SeekAndFind

Stanley Tools begged congress to make it possible for them to keep their headquarters in the US.

Congress sneered.


4 posted on 04/26/2014 10:25:06 AM PDT by null and void ( They don't think think they are above the law. They think they are the law.)
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To: SeekAndFind
a German think tank put together a “tax attractiveness” ranking based on 16 different variables. The statutory tax rate is one of the measures, of course, but they also look at policies such as “the taxation of dividends and capital gains, withholding taxes, the existence of a group taxation regime, loss offet provision, the double tax treaty network, thin capitalization rules, and controlled foreign company (CFC) rules.”

Here's the result of their study...


5 posted on 04/26/2014 10:25:31 AM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
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To: null and void

RE: Stanley Tools begged congress to make it possible for them to keep their headquarters in the US. Congress sneered.

So what did the company do after the sneer?


6 posted on 04/26/2014 10:26:32 AM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
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To: null and void

Well, reality has now sneered back.


7 posted on 04/26/2014 10:27:21 AM PDT by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: SeekAndFind

Thanks for your excellent and short explanation of what could happen to Walgreen and other US corporations, who have markets overseas.

So instead of sending jobs over seas, we will be sending our tax $’s and CEO’s and top execs over seas.

“There is a big tax advantage if Walgreen becomes a Swiss company. The U.S. imposes “worldwide taxation,” which means American-based companies not only pay tax on income earned at home but also are subject to tax on income earned overseas. Most other nations, including Switzerland, use “territorial taxation,” which is the common-sense approach of only taxing income earned inside national borders.

The bottom line is that Walgreen, if it becomes a Swiss company, no longer would have to pay tax to the IRS on income that is earned in other nations.

And here’s the problem ( Note to those who keep harping about bringing jobs back to America ).... Many people still think that taxpayers in the US economy’s productive sector should be treated as milk cows that exist solely to feed the Washington spending machine.

AS long as we have this mentality, expect more Walgreens to happen ( Heck, Apple and Google have already started the ball rolling ).”


8 posted on 04/26/2014 10:33:16 AM PDT by Grampa Dave ( Herr Obama cannot divert resources from his war on Americans!)
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To: SeekAndFind
The Walgreen Co. drugstore chain got its start nearly a century ago in downstate Dixon, Ill., before moving its corporate headquarters to Chicago and eventually to north suburban Deerfield.


9 posted on 04/26/2014 10:34:52 AM PDT by COBOL2Java (I'm a Christian, pro-life, pro-gun, Reaganite. The GOP hates me. Why should I vote for them?)
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To: SeekAndFind

I believe they moved corporate headquarters to the Bahamas. You’d never know it from their website...


10 posted on 04/26/2014 10:36:32 AM PDT by null and void ( They don't think think they are above the law. They think they are the law.)
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To: SeekAndFind

Yay Switzerland! They get it!

Boo, home team!


11 posted on 04/26/2014 10:36:57 AM PDT by Yaelle
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To: SeekAndFind

I fail to see how it matters one way or another if the sniveling little b!tches (Walgreens) moves to Switzerland. Either way they will be taxed on what they earn in the USA.

If they stay here we all know the scam. They will want to bring in overseas earnings tax free to distribute to investors-stockholders. No....they will not be investing that money here as they like to lie about. Anyways they can use US earnings for that

Even if the tax they pay in Germany is 5% and the US tax authorities want Walgreens to pay the difference between the German tax rate and the American tax rate which lets say is 20%.

These transnational corporations have no loyalty to America. F’em and better yet tax them!


12 posted on 04/26/2014 10:48:00 AM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: SeekAndFind

I believe they moved corporate headquarters to the Bahamas. You’d never know it from their website...


13 posted on 04/26/2014 10:52:10 AM PDT by null and void ( They don't think think they are above the law. They think they are the law.)
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To: SeekAndFind

Interpretation needed for the tables. What do the numbers represent?


14 posted on 04/26/2014 10:56:17 AM PDT by Balding_Eagle (Want to keep your doctor? Remove your Democrat Senator.)
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To: dennisw

“I fail to see how it matters one way or another ....”

Go back and reread the article — carefully this time.

The taxes on US-based earnings are not the issue.


15 posted on 04/26/2014 10:57:32 AM PDT by USFRIENDINVICTORIA
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To: dennisw
Either way they will be taxed on what they earn in the USA.

Yup. But if they remain a US corporation the IRS will continue to tax ALL OF THEIR WORLD WIDE INCOME.

If they become a Swiss corporation, or a Bahamas corporation, or a Chinese corporation, or a Zimbabwe corporation the IRS will only tax them on USA income.

Do the math!

16 posted on 04/26/2014 10:57:53 AM PDT by null and void ( They don't think think they are above the law. They think they are the law.)
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To: null and void
Yup. But if they remain a US corporation the IRS will continue to tax ALL OF THEIR WORLD WIDE INCOME.|If they become a Swiss corporation, or a Bahamas corporation, or a Chinese corporation, or a Zimbabwe corporation the IRS will only tax them on USA income.
Do the math!

You do the math! The IRS wants Walgreens to pay the difference between the US tax and lets say the Luxemburg tax. If Luxemburg is only taxing Walgrerens operations at 4% then the IRS wants the difference. I have no problem with this..... Walgreens can keep those earnings out of the US for all I care. Then the IRS gets no tax from them

17 posted on 04/26/2014 11:03:28 AM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: dennisw
So if the tax rate in Luxemburg is 4% and the US tax is 25% you have no problem with them paying 4% to Luxemburg and 21% to the USofA?

Let's see, that's a 21% penalty over what any Luxemburg company pays, isn't it?

That means to sell in Luxemburg they would have to charge 21% more than a company headquartered anywhere else on earth than the USA.

If you were a citizen of Luxemburg would you pay 21% more to buy the same product from a foreign company as from a native company?

Would you buy Exxon gas at $9.68/gallon or pay $8.00/gallon for essentially the same product from Royal Dutch Shell?

Is it remotely possible that this creates a world wide disadvantage for American headquartered companies?

Also, what exactly are they getting for the taxes paid on Luxemburg income? Do the local affiliates get better local roads? Reliable power? EPA regulation of Luxemburg operations? Access to Congress? Schools for their children? National Parks? What?

18 posted on 04/26/2014 11:17:23 AM PDT by null and void ( They don't think think they are above the law. They think they are the law.)
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To: SeekAndFind

Money before country. So what does a man die for?


19 posted on 04/26/2014 11:19:36 AM PDT by ex-snook (God forgives and forgets.)
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To: ex-snook

There is a long list of companies that would pay less overall tax by moving their HQ’s out of the US. The US has a bad corp tax policy versus even the more socialist countries..like Germany etc. It makes US companies less competitive and reduces US Exports...as well as preventing profits from being returned to the US. If you want fewer US jobs and fewer major companies HQ in the US..just continue the current tax law. Screw the multinationals and we will get the fid as well.


20 posted on 04/26/2014 11:58:36 AM PDT by Oldexpat
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To: COBOL2Java

All due respect Mr President reason why Walgreens was founded the owner who was phamrcist was looking for cure for malaria
Have Obama ever read Charles Walgreen bio on Wineperia very interesting

Later on his grandson Justin Deyes became friend with Ronald Reagan was part of so called Kitchen cabinet back in early 1970s also became friend with nice BRIT MP Margret Thatcher who went on to be Brit PM


21 posted on 04/26/2014 12:09:47 PM PDT by SevenofNine (We are Freepers, all your media bases belong to us ,resistance is futile)
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To: null and void
Just when I thought I couldn't be more surprised....companies are PENALIZED for not leaving the US?

So we suffer from the loss of job opportunities and all the positives a well-run corporation brings to its communities. Meanwhile, the CEOs will still collect their huge salaries and bonuses. Shareholders will still get dividends. And even more US citizens will get free ObamaPhones and food stamps and never be able to pay off their student loans.

Wow

22 posted on 04/26/2014 12:20:39 PM PDT by grania
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To: null and void

Walgreens is doing very well in America and it seems Europe. If they don’t want to pay US taxes on foreign profits then keep them abroad in European banks. Same as Apple does. Same as other US corporations like to do

And I disagree with your logic. The Luxemburg drug chain and Walgreens are taxed the same in Luxemburg. Walgreens should take those profits and invest them abroad. No need to repatriate the money and be taxed too much according to you


23 posted on 04/26/2014 12:58:58 PM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: dennisw

By all means keep that money out of America!


24 posted on 04/26/2014 3:02:27 PM PDT by null and void ( They don't think think they are above the law. They think they are the law.)
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To: null and void
By all means keep that money out of America!

It can bring it into America to be distributed to stockholders. But Walgreen's will have to pay 15% tax to do so. Like I said.....  I could care less if a multinational company (with minimal loyalty to America) has to pay 15% to this this. Its fine by me

25 posted on 04/26/2014 3:45:41 PM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: dennisw

You do love your taxes, don’t you?

Tax it to bring it into the country, then tax it again when it trickles down to shareholders, tax it again when it pays an American’s salary, tax it again when it becomes an executives bonus.

The power to tax is the power to destroy.

Is there any tax on Americans you don’t adore?

Anything American you don’t seek to weaken or destroy?


26 posted on 04/26/2014 3:54:22 PM PDT by null and void ( They don't think think they are above the law. They think they are the law.)
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To: dennisw

Apple would very much like to repatriate their overseas profits, but the gubment wants to penalize them for doing so; for being successful.


27 posted on 04/26/2014 4:53:25 PM PDT by AFreeBird
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To: dennisw
These transnational corporations have no loyalty to America. F’em and better yet tax them!

Yep! It didn't work the first time, let's double up! Ask yourself why American multi-national companies relocate overseas... It is because Americans, like you, elect politicians who have no business experience at all, who then promptly begin to buy votes with your money while telling you a pack of lies on the Sunday shows.

You move to better yourself, to a bigger, or quieter, or whatever flips your skirt, home. That is fine. But when a business does it, to make a better life, you disparage it. Why would you do that? It is not consistent thinking.

28 posted on 04/26/2014 5:48:06 PM PDT by SandwicheGuy (*The butter acts as a lubricant and speeds up the CPU*ou)
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To: expat_panama

Very interesting!


29 posted on 04/26/2014 8:47:57 PM PDT by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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