Yet NONE of our “esteemed /s” Main Stream Media will bother to explain that, will they?
Everything must be reported so as to put the AMERICAN company in the most extreme bad light.
I’ve seen not even a mention of the fact that Buffet, up to his nose in this, is the Billionaire that want us ALL to pay higher taxes.
The drum beat will continue to be the false claim that Burger King is acting only to avoid the taxes due to THIS country.
Frankly, I visualize the beginning of a parade. The band will be playing “The Inversion March”.
1. U.S. companies pay the U.S. Internal Revenue Service a tax rate of 35 percent on income they earn in the U.S.
2. U.S. companies pay the IRS a tax rate of 35 percent on income they earn abroad, but they can credit the amount of foreign tax they pay against that liability. So for instance if you earn $1,000 in Canada, you owe $350 of taxes in the U.S., but you can reduce that by the $150 that you paid to Canada (which has a 15 percent corporate tax rate), so you only end up paying the IRS $200. But still your effective rate is 35 percent — 15 percent to Canada, 20 percent to the U.S. — though you can defer those U.S. taxes for a long time if you just invest the money offshore.1 And because basically no countries have a higher corporate tax rate than the U.S. — and plenty have lower or zero rates2 — that means that U.S. companies owe the IRS taxes on pretty much all the income they earn anywhere in the world.
3.Foreign companies pay a tax rate of 35 percent on the income they earn in the U.S. And, for the most part, that’s it: Their home tax authorities rarely charge them tax on income that they earn in the U.S.
4.Foreign companies mostly just pay whatever the tax rate is in the country where they earn their income, and don’t bother writing extra checks to the U.S. tax authorities.
http://www.bloombergview.com/articles/2014-08-25/burger-king-may-move-to-canada-for-the-donuts