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.
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:
http://www.startribune.com/politics/national/263303981.html
“Obama to sign order banning federal contractors from discriminating against gay employees”
And we wonder why businesses flee.
Obamacare medical device tax ...
But Paul Krugman told me that Obamacare is a resounding success.
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.
http://www.twincities.com/News/ci_25968956/Medtronic-to-acquire-Covidien-in-429
From Bloomberg:
“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.