The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Saturday, September 27, 2014

Obama International Leader: Corporate Tax Inversion

I said: "You must pay a lot of taxes". (A former housekeeper said to Helmsley)

She said: "We don't pay taxes. Only the little people pay taxes."[11]
–Elizabeth Baum, former housekeeper to Helmsley (October 1983)

Earlier the 2014 CNN Carol Costello hosted a show with guest CNN's Christine Romans and discussed then slumping Burger King.  The two talked about Burger Kings plans to acquire a smaller company and move their company headquarters to another country: in Burger King's case Canada.

As you watch the segment two things will standout as noteworthy. First, the report is typical business news reporting and un-newsworthy for some. Corparte business internationally....It happens! Not only does it happen, it is almost a form of shifting jobs overseas, right. Wrong! The business of acquisition to acquire headquarters overseas for purpose of tax avoidance is a modern-day for of tax avoidance, in my opinion, is comparable to criminal acts that incarcerated Al Capone.

The CNN hosts covered the story within the parameters of show production or producers, but Costello's comments about "good business strategy" was revealing and sad. Of course, we characterize her comment as "revealing and sad" after President brought the issue to national attention. Leadership that has resulted in Treasury initiatives to slow or stifle US executives deploying strategy that is basically unfair. We must ask, however, how could US media personality find corporate tax avoidance, now known as Corporate Inversion, an item for compliment. 

Let's give a bit of slack. The Obama Administration hadn't yet gone full bore on the tax strategy. In any case it was not called "inversion" at the time of the Costello/Romans Broadcast.

July 24 2014, President Obama on CNBC with comment about corporate tax inversion. You and I know the GOP world never take-on corporate giants who sell in the US (and worldwide) and avoid US taxes through acquisition of, and moving, headquarters to foreign lands. The practice is the ultimate insult to the US consumer and basically "not fair."



Here’s What Inversions Are Costing Us

You don’t get to pick your tax rate. Neither should corporations.

That’s why, earlier this week, the Treasury Department took initial steps to prevent U.S. corporations from using a tax maneuver to avoid paying taxes in America. This loophole -- known as an “inversion” -- lets a company avoid taxes by relocating their tax residence overseas while changing very little else about its operations or business.

And it’s costing Americans nearly $20 billion over the next decade -- critical dollars that could grow and expand the middle class.

You Don't Get to Pick Your Tax Rate. Neither Should Corporations.

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