“Stop tax inversion by American corporations” is the latest war cry of American socialists. Obama is infuriated that U.S. corporations want to be American no more and is going to stop it.
Tax inversion is a method whereby a U.S. multinational company takes over a foreign company and creates a new corporate entity that the U.S. “tax inversion” uses to leave U.S. tax jurisdiction (the newly created company re-incorporates overseas). With a single takeover the U.S. corporation is no longer American — it might be British or Irish and subsequently pay a much lower rate of tax.
There's something really weird about the economic message President Obama put forward today. He talked about how we've already had a lot of deficit reduction and we need to shift our focus to creating jobs and strengthening the middle class.
WASHINGTON (Reuters) - President Barack Obama will propose a "grand bargain for middle-class jobs" on Tuesday that would cut the U.S. corporate tax rate and use billions in revenues generated by a business tax overhaul to fund projects aimed at creating jobs.
The U.S. government is driving some of its most productive citizens abroad. The only beneficiaries are countries such as Singapore and Switzerland, which offer sanctuary to Americans fleeing avaricious Uncle Sam.
Three years ago Eduardo Saverin, one of Facebook’s founders, joined 1,780 other Americans in renouncing their citizenship. Saverin’s case was particularly striking: Born in Brazil, he only gained U.S. citizenship in 1998. But heading overseas allowed him to reduce the federal government’s take when his company went public.
Economic refugees have traditionally lined up to get into America. Lately, they have been lining up to leave. In the past few months, half a dozen biggish companies have announced plans to merge with foreign partners and in the process move their corporate homes abroad.
Obama Condemns CEOsPresident Obama is fed up with corporations no paying their "fair tax".On August 24, Bloomberg reported Inversion Express Slows to Crawl as Obama Condemns CEOs On July 24 Obama referred to companies looking to shift their domicile as “corporate deserters” and aides pledged to curtail the practice with or without Congressional approval.
Last Week I received a response from reader Eric in response to the "U.S. Corporate Tax Dodge" by Barry Ritholtz. In his article Ritholtz sides with Fortune author Allan Sloan who wrote about Positively Un-American Tax Dodges.