Unclassified > The War Room

Burger King moving to Canada

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NightmarePatrol:
So the late news in corporate flight from the US is possibly going to be Burger King. Not exactly high on my list of businesses to patronize but more interestingly they will be saving themselves a whopping 13.5 percent on their corporate income tax by moving to the north after merging with TIm Hortons. That is of course the base line and I have no idea on how the deductions work out in Canada. However according to the link at the bottom the US is about as bad as it gets for taxation of the business community. I realize this flies in the face of the millions of people posting in the social media to end corporate welfare. I don't think the majority of the citizens realize that the business community (in general) gets screwed over pretty hard by the government tax-wise.

http://www.kpmg.com/global/en/services/tax/tax-tools-and-resources/pages/corporate-tax-rates-table.aspx

E-L Man:
Corporate Income tax definitely needs an overhall to maybe bring back the corporations that have moved overseas to avoid the heavy tax in this country. 8)

Jayhawk:
there's certainly something wrong with the tax code if it encourages companies to take advantage of this loophole and pay even less taxes to the U.S.

Appealing to patriotism or legally chaining companies to the US isn't going to fix it, either.

Nonetheless, businesses decry that the rate is a whopping 30-something percent. Ah, but with all the millions of special provisions slipped into the tax code along with various tax incentives and special programs, the average company only pays something like 16%.

That figure varies significantly by industry, just like some people pay the full tax-bracket rate while others get child credits, and energy credits, etc. GE gets so man special credits that one of the biggest companies in the world hardly pays any taxes. Whirlpool or Maytag was getting so many credits for building energy-efficient appliances a few years ago that they paid no taxes and had credits to carry over.

So if the rate is simply cut and all those programs remain, an awful lot of companies will pay a lot, lot less than world tax rates. OK, cut the rate, but make it more of a flat tax with fewer special favors for some.

The related situation is the idea of wanting to eliminate property taxes in Pa. It's not fair, proponents say. Instead, tax the wages of only those who are working, or bump up the sales tas. But it would have to be a tax shift because the money has to come from somewhere to run the government.

Great. So i have a few hundred bucks in property taxes on my modest house but pay an equal or higher amount in other taxes. It's a wash. The people pay, not the property owners. Meanwhile, someone like walmart with a 150,0o0-sq-ft supercenter would pay litte or nothing in property taxes. I'm not seeing the benefit here.

 

NightmarePatrol:
I had a friend some years ago (like 30) who was a CPA and did my taxes as a favor for a nominal fee. He had the entire US tax code on his shelves in the pre-point-and-click days and it was horrendous. I'm sure it's far worse these days. The current US tax nut for corporations is at 40 percent. That's a lot of money for the smaller operators that can't capitalize on incentives.

Nobody is really doing much for us truth be told. Between the bailouts, incentivising the tax code and handing out entitlements it's killing the middle class which is for all intents and purposes the heartbeat of the country. Maybe the powers that be don't want that anymore. It's not a Dem or GOP thing either. It's just bad representation.

Lifetime:
Tax codes are the culprit. I hear the bitching about large companies who pay no/low taxes and individuals paying through the nose. Here is where the tire meets the road.... IT IS CONGRESS WHO PUT THESE TAX LAWS TOGETHER..... GOP., DEM., IND. They made those laws WITH the loop holes so it is up to US to get those laws changed or.... change the Representatives we have.

I called into a local talk show a while back. The topic was the lack of taxes the Companies pay and the bitching to raise them. It seems no one knows how business works. Taxes are an OVERHEAD to them... so taxes go up for them... the price of their WIDGETS go up for us. WE PAY THEIR TAXES. The bottom line is profits. It is hard enough for private small businesses but the BIGGIES know the stockholders.. (ahem...US many times) are screaming for MORE profit so their dividends grow.)

I went to a town meeting with a local Congressman. All I heard was... "the Big Oil Companies were making too much profit". I did some research... an acceptable level of profit was 10% and below. The Oil companies were at that or less. It looked large because they deal in Billions, not Millions. If these people needed to bitch, they should have screamed at Bill Gates and, then, Jobs or Dell. The Computer Industry was claiming a very healthy 25% range of profit. No one bitched about them while on their way to buy the latest tech gadget. Hmmmmm.

Now to add the frosting on this cupcake.... I looked around the room and what I saw were gray haired, bald and wrinkled people ( much like myself) and I asked... "How many of you have a retirement program or portfolio?" All but a few raised their hand. I then suggested they look into the investments of their retirement programs and I would bet it included some money from a Petrol Industry of sorts. So I then asked if they might be happy to "punish the Oil Industry and accept a lower return/check for their retirement... No one said a thing.

For the most part...large businesses are NOT AMERICAN anymore. Thus there is no real "loyalty". Our world is now international in all aspects... be it food, items to buy and even services... "Hello, I am Ralph [ from Mumbai, India... not Mumbai, Iowa] How may I assist you?." WE allowed this to happen by letting our Legislators know we didn't care ( by our silence)...as long as we were fed and cared for. Try to buy a full American watch or even electronics. I think the last true full AMERICAN TV ( since has moved to Korea) was Curtis Mathis. It was one of the Best of it's time and a price to match.

How many people I know who own CHEVROLET AVALANCHE trucks, DODGE/PLYMOUTH NEONS, and CHRYSLER PT CRUISERS almost hit me when I tell them they were made in Mexico. So now a company may move it's Headquarters to Canada... and we bitch. Go back to my last paragraph and see part of the reason they are going. What Burger King is doing may be unethical and disloyal to us but... in the business world and the world of laws, WE allowed it.... and it is all legal...

So.... " Will you have a donut with that Big Mack sir/mame?"

Just my 2 cents.......

"WHEN YOU FIND YOURSELF DUG IN TOO DEEP.... QUIT DIGGING"




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