Tax Inversion? We Need THOUGHT Inversion

The U.S. corporate tax rate is among the highest in the world (we used to be among the lowest) and people actually have the audacity to wonder why corporations are leaving these shores?!

The latest company to make the news on this front is Burger King. The federal corporate tax burden on BK is fully 24% of their operating costs and a whopping 34% of their profits!!! Think about that for a minute - 34 cents of every dollar BK has left after paying their costs to run their business is paid to the federal government. None of this includes state and local taxes. The corporate tax encompasses both domestic and international profits, by the way, which is in addition to whatever taxes they pay to the other nations in which they operate.

It's ridiculous to expect a company, any company, to hand over that much of its profit to the government. By the way, don't think for a second that we aren't paying those taxes, as all companies ultimately pass on their expenses to the consumer.

Although Burger King has already stated they're not moving to Canada as part of their deal to purchase Tim Horton's, a Canadian donut and breakfast chain, making such a move would lower the tax burden on their profits a full 25%. What company wouldn't want that?

We need a thorough overhaul of our taxation system, and not just of personal income taxes. To think that doing what's best for your company is somehow "unpatriotic" is ridiculous to the point of absurdity. No company has any more of an "obligation" to keep its headquarters in this nation than any individual - more and more individuals are renouncing their American citizenship every year just because of taxes. That alone should give you pause the next time you think about voting for the socialists of the Left.

Another quick thought for you - the U.S. revolution occurred, in large part, because the colonists believed the tax burden placed upon them by a monarch was too onerous. Companies are fleeing the overbearing tax rate of the U.S., and heading to nations with more favorable corporate tax rates like Canada - which, in the irony of all ironies, is a Constitutional Monarchy. ~ Hunter