Tuesday, August 5, 2014
Loyalty
Lots of talk these days about how bad it is for companies to complete a so-called "inversion". That is a technique whereby a U.S. company merges with a foreign company to move the corporate headquarters off shore and in effect becoming a foreign company. They do this to avoid paying the exorbitant corporate taxes that the U.S. charges. Our corporate taxes are the highest in the developed world. This is a perfectly legitimate business decision that makes sense. But now many in the regime are decrying this business tactic as being somehow in-American. This is absurd! What is in-American is the current corporate tax structure that is prohibitive and kills innovation and entrepreneurialism. The government bureaucrats are floating various schemes to punish these companies. One of the most outrageous is described here. This really rings of 1934 Germany or 1954 USSR. I think a better and simpler solution would be to roll back corporate tax rates. But the current regime will never do that...because business is the enemy!
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