Burger King takes their talents to Canada

[I-10east]

I don't care what anyone says, America is still the Land of the Free, and the Home of the Whopper!!! Damn Canadians, Ruining Americana!!! 

https://www.youtube.com/watch?v=qKBKeHk7f30 

[fsquid]

Fsquid I get that to businesses it is just business. However it is when citizens like you feel those businesses should get a free pass to our market that I don't understand.

I do not, I believe the tax code should be reformed. 

[fsquid]

U.S. companies face the highest official corporate tax rate in the world. But there's a big difference between the rates set out by law and the cash that's actually collected.

Large, profitable U.S. corporations paid an average effective federal tax rate of 12.6% in 2010, the Government Accountability Office said

http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/

Crippling!

yes, because large profitable corporations are usually multinational with a large portion of their revenue being taxed overseas reducing their effective rate.  I work for a fortune 100 company and we are about 50% domestic, so our effective rate is around 25-27%

[fsquid]

if you get frozen out of our market and have to pay import taxes to sell your good here, then you can also kind of frack yourself too.

Which will be the predictable result.

The question is what will be the charges paid for repatriation?

Companies pay import taxes now on anything imported unless it falls under NAFTA. 

[avonjax]

I was reading comments on a national blog site and the comments were crazy. Most were blaming Obama for the tax rate which has been in effect for quite some time. Why does Bush get a free pass? I'm not defending Obama just stating a fact. I am very sick of every ill of this country being blamed on Obama. It actually makes me like him more.

A former German citizen at this same site pointed out that Germany had a low corporate tax rate but the personal tax rate was through the roof.
And all the crazy talk about how the top 10% pay 90% of taxes. They still get huge tax breaks and the blogger failed to mention that the top 5% control 70% of the country's wealth. So of course they pay the most.

And the typical hard core right winger implied that the bottom 90% were essentially freeloaders. We want to sit on our butts and get handouts.
It's offensive and a lie of course.

[JeffreyS]

[fsquid]

well no one should be saying that they only bought Horton for inversion purposes.  Breakfast is the last gold mine for the fast food people to fight over and Burger King is way behind McDonalds on that front.  Buying Horton at least gives them a shot.

[fsquid]

well no one should be saying that they only bought Horton for inversion purposes.  Breakfast is the last gold mine for the fast food people to fight over and Burger King is way behind McDonalds on that front.  Buying Horton at least gives them a shot.

thanks for republishing the public relations memo

by all means please tell me how a company that gets 80% of their sales in the US will get some huge windfall from this inversion?  At the end of the day, its a hail mary play as donuts and burgers are declining as many in the population have shifted from those places to fast casual joints like Chipolte.

[Dog Walker]

Why anyone, ever, would eat anything at a Burger King or Tim Horton's is a mystery to me.  UGH!

[finehoe]

well no one should be saying that they only bought Horton for inversion purposes. 

That communist rag the Wall Street Journal is saying it.

http://online.wsj.com/articles/burger-king-tim-hortons-merger-plan-raises-tax-inversion-issue-1409010049

[I-10east]

Study: Burger King's move to Canada could save 1 billion in US taxes

Burger King's plan to base its corporate parent in Canada after it acquires Tim Hortons will allow the company and its top shareholders to "dodge" $400 million to $1.2 billion in U.S. taxes from 2015 to 2018, according to a newly released report by Americans for Tax Fairness.

Burger King responded to the report on Wednesday, saying: "The analysis in the report is materially flawed and the figures do not accurately represent our facts and circumstances."

Miami-based Burger King Worldwide in August agreed to buy Tim Hortons in an $11 billion deal that will create the world's third largest fast-food chain. While Burger King will continue to be headquartered in Miami, the corporate parent will be based in Canada. Tim Hortons shareholders approved the deal on Tuesday, and it is expected to be completed on Friday.

Burger King's top executives have stressed that the deal wasn't driven by a desire for lower tax rates but by a growth strategy designed to create value through accelerated expansion. Daniel Schwartz, Burger King's chief executive told analysts in August that the company doesn't expect to achieve any "meaningful tax savings or meaningful changes in our tax rate." In fact, the company's effective tax rate in the United States is 27 percent, and in Canada, it will be about 26 percent, the company said.

The Americans for Tax Fairness' report found that by renouncing its U.S. corporate citizenship, Burger King would not have to pay $117 million in U.S. taxes on profits that it held offshore at the end of 2013. "Burger King has been able to indefinitely defer paying taxes on those profits under U.S. law; by becoming a Canadian company it may never pay U.S. taxes on those profits," the report said.

Burger King also may avoid an additional $275 million in U.S. taxes between 2015 and 2018 because it will no longer have to pay U.S. taxes on future worldwide profits, according to the report from the ATF, a coalition of 425 national and state organizations that advocates for tax reform.

In addition, Burger King's largest private shareholders could save as much as $820 million in capital gains taxes as a result of the inversion, the report said.

Read more here: http://www.miamiherald.com/news/business/article4409676.html#storylink=cpy

[spuwho]

Burger King responded to the report on Wednesday, saying: "The analysis in the report is materially flawed and the figures do not accurately represent our facts and circumstances."

Yep, analysis was wrong, we will save twice what they listed in taxes.

[I-10east]

^^^LOL

[JeffreyS]

I am not anti foreign owned companies but I am pro American owned and for something as small as a drive through meal I can sacrifice BK for some other crappy fast food.

[fsquid]

good for shareholders.