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Confiscatory Taxes, Eh? What does "Economic Patriotism" Really Mean?
National Review ^ | 08/27/2014 | The Editors

Posted on 08/27/2014 7:25:57 AM PDT by SeekAndFind

If you’re looking to move from Miami to Canada, as Burger King Worldwide is, chances are excellent that your motive is something other than the weather.

The word “inversion” has entered the popular vocabulary, describing a tax-driven corporate merger in which a U.S. firm acquires an overseas company and then relocates its legal domicile to that firm’s home tax jurisdiction. The purpose of this is in no small part to escape the onerous U.S. corporate income tax. That’s what Burger King is looking to do by acquiring beloved Canadian doughnut chain Tim Hortons, which is based in Ontario. A number of U.S. pharmaceutical companies have relocated to Ireland and the Netherlands — one tried, unsuccessfully, to move to Sweden — while Illinois-based Walgreens was barely dissuaded by political pressure from relocating to Switzerland.

Canada, the Netherlands, Sweden: Not exactly your typical tax havens.

The U.S. corporate income tax has two counterproductive features. The first is that it imposes the highest nominal tax rate in the developed world. That is, counterintuitively, less important than it sounds: Our corporate tax code is riddled with political favoritism in the form of special carve-outs, exclusions, and deductions, so that many firms pay only a fraction of the top rate — especially if they are politically well connected. The high nominal rate and the plethora of sweeteners is in effect a carrot-and-stick arrangement, and effective business tax rates, while relatively high overall, vary significantly from corporation to corporation and from industry to industry.

(Excerpt) Read more at nationalreview.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: corporatetax; taxes; taxinversion

1 posted on 08/27/2014 7:25:57 AM PDT by SeekAndFind
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To: SeekAndFind

Failing Banana Republic’s attempt to control the flow of capital to prevent their currency and economies from collapse. Once they start with the currency and capital controls companies will no longer invest and the flight of capital increases. By keeping their profits overseas and moving their legal HQ’s overseas companies are fighting the anticipated increase of controls and taxes.
Get out while you can..


2 posted on 08/27/2014 7:34:59 AM PDT by Oldexpat
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To: SeekAndFind
What does "Economic Patriotism" Really Mean?

Simple...

YOU aren't paying enough!! More, More, More...

3 posted on 08/27/2014 7:43:00 AM PDT by ProtectOurFreedom
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To: SeekAndFind

At some point American workers ought to reach an understanding with one another.

What say we all refuse to file income tax returns.

Can the Fed put MILLIONS of us in slam?


4 posted on 08/27/2014 7:45:32 AM PDT by SMARTY ("When you blame others, you give up your power to change." Robert Anthony)
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To: SMARTY

I doubt it but there are those millions of rounds the various A’s have. Quicker and cheaper than the gray bar hotel or re-education camp.


5 posted on 08/27/2014 7:53:25 AM PDT by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.q)
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5% Carry 100% of Free Republic Expense


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Support FR Or Lose It

6 posted on 08/27/2014 8:28:02 AM PDT by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: SeekAndFind

This, from an administration populated almost entirely by tax cheats...


7 posted on 08/27/2014 8:42:45 AM PDT by afsnco
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To: ProtectOurFreedom

“The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents – #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back — $30,000 for every man, woman and child. That’s irresponsible. It’s unpatriotic.” —Barack Obama; Independence Day, 2008, Fargo, North Dakota:


8 posted on 08/27/2014 9:53:50 AM PDT by TurboZamboni (Those who make peaceful revolution impossible will make violent revolution inevitable.-JFK)
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To: SMARTY

Read about the wide-spread tax revolts in the 30s, mainly against property taxes. The authorities were not able to keep up with the sheer volume of protesters and they were able to force tax reform in many areas of the country which let people keep their homes, farms and businesses.


9 posted on 08/27/2014 5:27:30 PM PDT by ProtectOurFreedom
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