Monday, August 25, 2014
Home of the Tax Evader
"Just around the corner" if by "corner" you mean the Canadian border….
News that hamburger chain Burger King is bidding for Canada's iconic Tim Hortons coffee and doughnut chain provides another example of corporations relocating in foreign nations to dodge U.S. corporate taxes, while profiting from huge consumer sales in the U.S.
The tax-avoidance scheme is called "inversion," and we've recently noted where corporations are setting up their headquarters abroad to duck taxes here. The assumption that all large corporations pay the full rate (35%) in corporate taxes is belied by the fact that the average rate they pay is 12.6% after taking advantage of write-offs and loopholes in the tax code.
From shipping jobs overseas to shipping themselves there, it's all about short-changing the public and pocketing the change in profits.