Skip to comments.Medtronic to buy Covidien for $42.9 billion, rebase in Ireland
Posted on 06/16/2014 9:28:21 AM PDT by kidd
U.S. medical device maker Medtronic Inc said on Sunday it had agreed to buy Covidien Plc for $42.9 billion in cash and stock and move its executive base to Ireland in the latest transaction aiming for lower corporate tax rates abroad.
While the deal will allow Medtronic to reduce its overall global tax burden, the Minneapolis-based company said it was driven by a complementary strategy with Covidien on medical technology rather than tax considerations
(Excerpt) Read more at money.msn.com ...
Freepers can expect to hear the term "inversions" with greater frequency.
Inversion - Acquisition of a company with the main goal of lowering corporate tax rates
Where’ the “Bring American Jobs Back” guy?
Sadly, this is just the beginning of the medical device manufacturer flight. The congressional GOP tried to fix this, but not hard enough.
Mark Dayton and Weird Al Franken could not be reached for comment...
No they capitulated to Obamacare and told us to get used to it.
Ireland is a nice place. I wouldn’t mind living there.
How about no corporate taxes, no tax write-offs for corporations, perks like meals and country club memberships to be taxed as income for recipients. Stock package compensation to be taxed as regular income.
Also, no corporate political contributions, individuals only.
/if I were king.
Meanwhile in Baraq-land:
“Obama to sign order banning federal contractors from discriminating against gay employees”
And we wonder why businesses flee.
In Ireland, anyone wishing to own a firearm must go to their local Garda station and request a form (FCA1) for a firearms license or alternatively download it and print it off the Garda website. One must specify a legitimate reason for wanting a firearm such as hunting or target shooting and show proof of the ability to do so for example Gun Club membership or shooting range membership and also a shooting safety course is also appreciated by the authorities. Each license is only good for one firearm, but one may apply for multiple different licenses each of which last three years. One must also list the firearm they wish to buy on the form including the serial number, action and chambering. Other things which must be included in the form include a passport photo, 2 character references and your medical doctors contact details. After the license is issued one may pick up their firearm at the gun store. Handguns are allowed but only as rimfires or air pistols, occasionally a higher calibre pistol may be licensed if a valid reason is given for example a person who works with dangerous animals in their career. All automatic rifles are banned, semi-automatic rifles are effectively banned also but some licenses for these types of firearms do exist in the country though they are difficult to acquire. Rim-fire semi automatics are allowed on a non-restricted license only as long as the magazine doesn’t exceed ten rounds, if a larger magazine is requested then a restricted license is required. Air pistols are also legal and so are air rifles, but require firearms certificates when they have power exceeding 1 joule. Shotguns with magazines bigger than 3 rounds also require a restricted license along with rifles over .308 calibre and any firearm resembling a military weapon.
Obamacare medical device tax ...
But Paul Krugman told me that Obamacare is a resounding success.
I guess Cringing has to run errands and tend to personal hygiene from time to time. His (her?) heart is in the right place though.
Ireland may have strong restrictions on owning and using guns but has much much less of a police presence than US.
In two weeks in Ireland last year I saw only two police cars on the road - I see more than that on short errands in my safe town. No foot patrols in the bar districts.
In Ireland the belief seems to be that people police themselves according to good sense and custom, firearms the exception, where the state steps in. And maybe recycling too, although I’m not sure how the enforcement works on that - maybe it’s still self-policing. :)
from the Pioneer Press today:
Once the merger is complete late this year or in early 2015, Medtronic and Covidien will be combined under a new entity called Medtronic plc that's based in Ireland for tax purposes.
Having the company based in Ireland "allows us to use the cash flows that are generated by the Covidien entities outside the U.S. ... and invest them in the U.S. without paying tax (here)," Ishrak said in an interview.
Raise the import tarriffs. If it’s not produced in America, tarriff it. Jobs will come back and headquarters fill follow the jobs.
“Companies are so keen to escape the U.S. system because of the combination of a high tax rate — 35 percent, the highest among developed nations — and the practice of taxing the earnings of U.S. companies foreign subsidiaries when the money is transferred back to the U.S. Many other nations, such as the United Kingdom, tax only domestic profits.”
From the Star Tribune:
“...the deal would allow it to better use profits made overseas. Medtronic has managed its tax expense in the past by leaving abroad the profits earned by its non-U.S. subsidiaries.”
Governor Dayton and the Democrats have sent a strong signal that Minnesota intends to grow government, raise taxes and unionize entire industries. That message now directly coincides with another of Minnesota’s largest and most prestigious Fortune 500 companies’ decision to move their headquarters out of the country.