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Burger King is moving their global HQ to escape the US tax on their global operations.  They will still pay US corporate tax rates on sales in the US.  The US is the only nation that taxes income on overseas operations.  That income will now be reported thru Canada, BK is not even a US corporation any more. 3G Capital holds 71 percent of their stock. 

 

3G Capital is a Brazilian multi-billion dollar,[1][2]global investment firm focused on long-term value creation, with a particular emphasis on maximizing the potential of brands and businesses.  3G has HQs in NYC and Brazil. 

 

3G Capital is, for its shareholders, doing the responsible thing.  BKs sales are plateauing in the US, but growing outside the US  It would be irresponsible to pay the much higher US corporate tax rates.  #G is but one of many moving the corporate HQs out of the nation. 

 

So, eat or don't at BK.  If you do, they will still pay taxes on your purchase.

 

The US has one of the highest corporate tax rates and is the only nation to tax oversea corporate profits.

http://www.iiea.com/blogospher...-corporate-tax-rates

 

 

 

 

 

 

tom horton's makes more than burger king with a third the locations.. it's a model of efficiency. seems more like they're absorbing burger king. all the recent reports say the 'fast food burger' is about to go through a major slump/change... one business is about to start a downward trend.. one is looking to expand. 80% of tom horton locations are still in canada. we'll see how it works out, in the long run, i guess.

They're following the law:

 

In 2004, Congress tried to curb inversions by saying U.S. companies couldn’t escape U.S. taxes by simply reincorporating abroad, with the same shareholders and executives running the new company. Instead, Congress passed a law saying that in order to become a foreign-owned corporation, U.S. companies must merge with a foreign partner, even if the foreign partner is much smaller.

 

http://www.washingtonpost.com/...c44c01e7f_story.html 

Last edited by Jobe
Originally Posted by Jobe:

No Inversion Is Not Unpatriotic. Yes We Need Corporate Tax Reform

http://www.forbes.com/sites/th...orporate-tax-reform/

 

Inversion Critics and Investors May Be Misjudging Burger King Deal

http://dealbook.nytimes.com/20..._type=blogs&_r=0

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The second article ignores that BK will not be taxed on income earned outside Canada.  Nor, will Ontario tax income earned outside that province. 

Originally Posted by jtdavis:

Burger King is another example of someone or something wanting the advantages of being in the US and not paying for the privilege of being here. I'm not getting anymore whoppers.

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So, you will not be purchasing from any of the other companies in the article I linked. 

Originally Posted by jtdavis:

What percent of US companies pay 35% tax, what percent pay close to 12.6% tax?

JT, our corporate tax code is littered with loopholes that allow companies to pay less than 35%.

 

However, navigating our tax code to find these loopholes and implement them is not cheap. Big companies spend millions on accountants and lawyers to complete their tax returns. I read somewhere that GE's tax return was 58,000 pages. 

 

With a simpler tax code that is money that could be used instead to expand operation or to return to shareholders. 

Originally Posted by jtdavis:

If a congressman tried to introduce legislation to eliminate those loopholes, his reelection money would dry up in a heart beat.  Both sides are bought by big donors.

That's why the rate has to be lowered when you close the loopholes.

 

The loopholes are what keeps us competitive with the rest of the world. 

 

If we closed the loopholes and left the rate at 35% then businesses would leave the country in droves. 

Originally Posted by mad American:

So why all the whining and b  it  chi ng from the left about corporate taxes?   Why does a lefty think it is ok to tax profits twice? 

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More free money for smokes, alkyhaul, weed, and other goodies for them.

Originally Posted by mad American:

Why does the left want to tax profits twice?

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If, it exists, the lefties want to tax it. 

"Let me tell you how it will be

There's one for you, nineteen for me

Cos I'm the taxman, yeah, I'm the taxman

Should five per cent appear too small

Be thankful I don't take it all

Cos I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street

If you try to sit, I'll tax your seat

If you get too cold I'll tax the heat

If you take a walk, I'll tax your feet

Taxman!

Cos I'm the taxman, yeah I'm the taxman

Don't ask me what I want it for (Aahh Mr. Wilson)

If you don't want to pay some more (Aahh Mr. Heath)

Cos I'm the taxman, yeah, I'm the taxman

Now my advice for those who die

Declare the pennies on your eyes

Cos I'm the taxman, yeah, I'm the taxman

And you're working for no one but me

Taxman!"

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