Burger King seeking to acquire Tim Hortons and move headquarters to Canada

[Draggingtree]

Washington Post: Burger King seeking to acquire Tim Hortons and move headquarters to Canada

BY JOSEPH LAWLER | AUGUST 25, 2014 | 1:00 PM

 

The major fast food chain Burger King is in talks to merge with the Canadian donut and coffee chain Tim Hortons and move its headquarters to Canada.

 

Burger King would be one of the largest and most well-known companies to seek to leave the U.S. in a so-called corporate inversion, in which a U.S. company buys a smaller foreign company in a lower-tax jurisdiction and then places its headquarters in the foreign country to lower its tax bill. Its departure will likely heighten concerns about inversions eroding the American tax base.

 

In a press release announcing the discussions, Burger King and Tim Hortons said that they were pursuing the deal for business reasons and to accelerate Tim Hortons' international growth. But the new company's headquarters would be located in Canada,

[Draggingtree]

Admits raising corporate rates to their current astronomical level

 

Bill Clinton: Hey, let’s end tax inversions by lowering the corporate tax rate!

 

By Robert Laurie September 24, 2014

According to the Organization for Economic Cooperation and Development, the United States currently has the highest combined corporate income tax rate in the industrialized world.

 

This has caused the phenomena known as “tax inversions” where a company absorbs a foreign corporation (usually a competitor) and relocates their business operations to the newly involved country. Obviously, we just watched this happen with the Burger King / Tim Horton’s buyout, which saw the Whopper head north of the border to take advantage of Canada’s lower tax rates.

 

The practice has the left screaming about how greedy and evil these horrific companies are. Barack Obama has called it “unpatriotic”

 

http://canadafreepress.com/index.php/article/66263

[Draggingtree]

Obama Is Inverted on Inversions

 

RAMESH PONNURU, THE AMERICAN ENTERPRISE INSTITUTE

Corporate inversions - when American companies reincorporate abroad to lower their tax bills - have become a political controversy solely because of the screwiness of the US tax system. If our government taxed companies based on their consumption, or on the income they make on US territory, or on where their shareholders live, then the place where they were chartered would have no tax consequences. Our government has instead decided to tax the worldwide profits of companies chartered in the US, and is then shocked that companies prefer to move their charters elsewhere. President Barack Obama's administration is taking regulatory action to deter companies from avoiding US taxes this way, and urging legislative action as well. Republicans think that instead of new regulations we should move toward a territorial tax system where charters don't matter so much and then cut corporate tax rates. Many Democrats, too, have called for lower corporate rates, including Obama himself. Compared to other developed countries, which have been cutting their rates over the last few decades, the US has high corporate taxes

http://www.aei.org/article/politics-and-public-opinion/executive/obama-is-inverted-on-inversions/