A CNN Breaking News email informed me of this tidbit:
“Burger King and Canadian coffee and doughnut chain Tim Hortons have announced they are merging, a deal that would allow the burger seller to move out of the U.S. and possibly cut its tax bill.
The merged company will be based in Canada and have 18,000 restaurants worldwide.
By moving north of the border, Burger King would be completing what is called an “inversion” — a strategy that allows U.S. firms to lower their tax bills by merging with a foreign company, and then relocating to the new country.”
Interesting; corporations, which the US Supreme Court have ruled are “people,” can avoid paying US income tax by moving abroad. Why can’t US citizens benefit from this? The United States is one of only two countries – the other is Eritrea – that taxes its citizens who aren’t living in the country. Not only is the compliance complex and expensive, but because of FACTA – the Foreign Account Tax Compliance Act – banks overseas have to report on US citizens’ accounts to the US. This is leading many banks to start asking their American customers to find other places to keep their funds.
So, businesses can just move their headquarters and not pay US income tax on money they’ve earned in the US; other companies, like Apple, can store their money in the Cayman Islands and avoid taxes; but individuals get taxed without representation…