Progressives are outraged. “But that’s so unlike them, Jon.” I know, but this time they mean it.
Burger King, a fast food establishment I last visited during the Clinton administration, has determined that their tax bite is a bit lower if they incorporate in Canada rather than the U.S. Or something like that. I’ll let the experts explain:
Miami-based Burger King confirmed on Tuesday plans to buy Tim Hortons for about $11 billion, creating a new fast-food giant that will be based in Canada. The relocation of such a high-profile American brand drew new scrutiny to the debate over so-called tax inversions at a time when U.S. lawmakers look to stem the growing wave of company departures…
In an inversion, a U.S. firm relocates—usually through a merger with a smaller company—to a country where tax rates and rules are perceived to be friendlier, but it typically continues to be managed from the U.S.
To stem lefty anger and federal backlash, BK insists the move has nothing to do with taxation. However, it’s tough not to notice that the U.S. statutory tax rate is 35% and 15% in Canada. Wall Street noticed as well, sending Burger King’s and Tim Horton’s stocks soaring.
When Canada resembles a Caribbean tax haven, it might be time to re-assess America’s absurd corporate taxes. But the Left’s outrage machine is just getting started. Angry social media mavens are calling the executives “tax cheats” and “traitors” while left-leaning websites demand a boycott. Perhaps more disturbing are the comments by U.S. Senate Banking Subcommittee Chair Sherrod Brown (D-Ohio):
”Burger King’s decision to abandon the United States means consumers should turn to Wendy’s Old Fashioned Hamburgers or White Castle sliders. Burger King has always said ‘Have it Your Way’; well my way is to support two Ohio companies that haven’t abandoned their country or customers.”
I imagine several Democrats are re-evaluating their opposition to a secure border. However, they prefer a fence on the northern border designed to keep Americans in. Perhaps Obama should simply ban businesses from leaving the country. That strategy worked great for Venezuela, though I recommend we create a Strategic Toilet Paper Reserve ASAP.
Thankfully one Democrat is fine with the move. Warren Buffett’s investment firm, Berkshire Hathaway, is helping to finance the deal. His overtaxed secretary was unavailable for comment.