Skip to comments.Medtronic's Covidien deal spurs debate about corporate taxes
Posted on 06/17/2014 4:57:32 AM PDT by TurboZamboni
Is Medtronic's massive international corporate merger a billion-dollar tax dodge, an indictment of the U.S. tax code or a business-savvy work-around that could spur investment and growth in the Twin Cities?
The answer depends on whom you ask.
The $42.9 billion cash-and-stock purchase of Covidien, which was announced Sunday, comes with plans for Medtronic to decamp its executive suite to Ireland, where Covidien is based.
It also will nearly double the size of the Fridley-based medical device maker and likely result in no significant change in its 8,000-strong Twin Cities workforce. The company is talking about adding 1,000 workers locally.
The move is designed to allow Medtronic to avoid U.S. corporate tax rates in repatriating foreign earnings and cash held overseas, potentially letting the company invest billions in the United States.
(Excerpt) Read more at twincities.com ...
Good for Medtronic.