The new big news today is the announcement of Burger King buying Canadian franchise Tim Hortons for 11.5 billion dollars. Normally such news would not be talked about much beyond the normal scope of business, and for most Americans, nothing much changed inside the USA.
However, there has recently been a change in the political landscape of such buyouts, especially considering the recent talk about inversion. The practice where a US company moves outside of the USA for many reasons including taxes.
A couple of weeks ago there was a blog post about this type of activity and the economic Berlin Wall that democrats wish to erect to keep companies inside the USA, to pay ‘their fair share’ of taxes.
Now it appears a major US company is doubling down on democrats and their war against the economy. With the Burger King and Tim Hortons merging, the corporate headquarters will remain inside, not the USA, but Canada.
Now the left, liberals, and democrats are screaming about cooperate patriotism and how companies should stop using inversion from paying high taxes. So now tax money that the government would have received, they will no longer receive.
The solution from democrats, we need a law to stop companies from doing this. With their self proclaimed high intelligence, how do they fail to understand that the very laws and taxes are what is making companies leave?
The answer is simple, they cannot admit they have made a mistake. So instead of fixing a broken tax code, and economy, democrats are looking to double down. The risk, they make the USA appear even less business friendly.
Despite what Burger King says about not moving for tax purposes, it will effect their bottom line, and paying less taxes, they might be able to either have lower prices, or pay employees more. (I doubt either will happen, but one can hope).