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jgoose71

Burger King: This is how a "Tax Inversion" works

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Well, as a country we just lost a bunch more tax revenue. Why does the left keep fighting tax reform? Their response is to make this stuff illegal, but business will find loopholes, or, pay a congressman to write in a loop hole. The interesting part is that Warren Buffet is financing 25% of the transaction.

A while ago I heard Obama talking about Economic patriotism. It sounded a lot like Jimmy Carter's "Malaise Speech," for those of you that remember it. Here is a new term that the left (obviously not talking about Warren Buffet in this case) should learn, "fiduciary responsibility."

http://www.forbes.com/sites/greatspeculations/2014/08/29/burger-king-tim-hortons-cross-border-merger-much-more-than-tax-inversion/
"There is an art, it says, or, rather, a knack to flying. The knack lies in learning how to throw yourself at the ground and miss."
Life, the Universe, and Everything

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Plainly obvious to anyone who wants to see; BK is on the front lines of 2 battles here in the lower 48. They serve unhealthy food and the principles are those mean people who make lots of money. We don't want them or their fat taxes.
Please don't dent the planet.

Destinations by Roxanne

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Sounds like a great plan. Let's take every "fat cat" in the U.S. we don't like and kick them out and tell them to take their money and their jobs with them. Tell me how it works out.
"There is an art, it says, or, rather, a knack to flying. The knack lies in learning how to throw yourself at the ground and miss."
Life, the Universe, and Everything

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Yeah. The lefties have now taken the "Patriotism" thing to heart. Unless you submit, you aren't patriotic.

Quote

Canada’s federal tax rate of 15%, combined with Ontario’s corporate taxes of 11.5%, results in a combined tax rate of 26.5%. It will benefit the American company in tax savings, as it can use the saved money to reinvest in the businesses or to fund the dividends and share buybacks.



Or expand the business, hire more people, etc.

The US has higher taxes than a socialist country. And we're a free country? Remember when businesses came to the US as dissidents?


My wife is hotter than your wife.

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jgoose71

Tell me how it works out.



Ask Apple

They have functioned under an Irish holding company for many years.

A company that has zero employees in Ireland
Smart business models survive
And today smart does not include being a US company
"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

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What they did makes sense, and not simply because of the tax benefits.

Tim Hortons is good at coffee, coffee is high margin, and BK is not good at coffee.

If you want to see things like this stop, then reform the tax code.

There aren't many companies that tax inversions work for, and if you know more about them you would also understand that they aren't just smoke and mirrors, naked inversions don't exist any more. You need to find a partner that has actual substance and synergy, and it needs to be large enough for the tax benefits to kick in.
"The restraining order says you're only allowed to touch me in freefall"
=P

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> Here is a new term that the left (obviously not talking about Warren Buffet in this
>case) should learn, "fiduciary responsibility."

Here's a term the right wing should learn. It's a lot simpler. It's "responsibility." That means if you have a war, or buy $400 billion worth of marginally effective airplanes - you have to pay for them.

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billvon

> Here is a new term that the left (obviously not talking about Warren Buffet in this
>case) should learn, "fiduciary responsibility."

Here's a term the right wing should learn. It's a lot simpler. It's "responsibility." That means if you have a war, or buy $400 billion worth of marginally effective airplanes - you have to pay for them.



yes...now the next question. How on earth are they accomplishing that by driving the income stream out of the tax base? SO they fail on both 'terms' don't they. You can call it 'right' or 'left' but it's a double fail.

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Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants

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billvon

> Here is a new term that the left (obviously not talking about Warren Buffet in this
>case) should learn, "fiduciary responsibility."

Here's a term the right wing should learn. It's a lot simpler. It's "responsibility." That means if you have a war, or buy $400 billion worth of marginally effective airplanes - you have to pay for them.



Or if you have $2 trillion of entitlement spending per year, you may want to consider paying for it. $18 trillion dollars of national debt isn't explained by the Iraq War or new airplane. It'd be nice to say, "if only we canceled the F-35 corporations would stop leaving for better tax treatment."

The American tax code is a failure. And it's because politicians on all sides lack the balls to do anything about it. (Lest anyone think the GOP is so corporate friendly, ask these corporations how swell the GOP has been. So friendly they are going elsewhere...)


My wife is hotter than your wife.

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> How on earth are they accomplishing that by driving the income stream out of
>the tax base?

Not working, is it? Too bad we didn't think of that before we spent all that money.

The situation reminds me of a low income guy with a 2.3 million dollar house bemoaning "but what am I SUPPOSED to do? I'm trying really hard to pay all my bills but I just can't afford my mortgage. It's the banker's fault."

(Or more to the point in this case - "it's my wife's fault. She's spending like a drunken sailor!")

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>Or if you have $2 trillion of entitlement spending per year, you may want to
>consider paying for it. $18 trillion dollars of national debt isn't explained by the
>Iraq War or new airplane.

Agreed. It's Medicare and Medicaid, and the Iraq war, and Veteran's hospitals, and the F-35, and the space program. It's great to have all of the above. But "we got all these cool things but don't want to pay for them" is not an option.

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DougH

What they did makes sense, and not simply because of the tax benefits.

Tim Hortons is good at coffee, coffee is high margin, and BK is not good at coffee.

If you want to see things like this stop, then reform the tax code.

There aren't many companies that tax inversions work for, and if you know more about them you would also understand that they aren't just smoke and mirrors, naked inversions don't exist any more. You need to find a partner that has actual substance and synergy, and it needs to be large enough for the tax benefits to kick in.



It does make sense
and it is legal

If the US keeps the tax rates high as they are today many more will follow this sound business practice

As well they should
"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

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rushmc

***What they did makes sense, and not simply because of the tax benefits.

Tim Hortons is good at coffee, coffee is high margin, and BK is not good at coffee.

If you want to see things like this stop, then reform the tax code.

There aren't many companies that tax inversions work for, and if you know more about them you would also understand that they aren't just smoke and mirrors, naked inversions don't exist any more. You need to find a partner that has actual substance and synergy, and it needs to be large enough for the tax benefits to kick in.



It does make sense
and it is legal

If the US keeps the tax rates high as they are today many more will follow this sound business practice

As well they should

being patriotic and a good businessman are 2 different things, when the left starts to realize this things may start getting better. How long does the left think a CEO will keep his job if he passes up on saving the company tens of millions $s?

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marks2065

******What they did makes sense, and not simply because of the tax benefits.

Tim Hortons is good at coffee, coffee is high margin, and BK is not good at coffee.

If you want to see things like this stop, then reform the tax code.

There aren't many companies that tax inversions work for, and if you know more about them you would also understand that they aren't just smoke and mirrors, naked inversions don't exist any more. You need to find a partner that has actual substance and synergy, and it needs to be large enough for the tax benefits to kick in.



It does make sense
and it is legal

If the US keeps the tax rates high as they are today many more will follow this sound business practice

As well they should

being patriotic and a good businessman are 2 different things, when the left starts to realize this things may start getting better. How long does the left think a CEO will keep his job if he passes up on saving the company tens of millions $s?

It is made to be emotional for the left
Thinking is not required
"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

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billvon

> Here is a new term that the left (obviously not talking about Warren Buffet in this
>case) should learn, "fiduciary responsibility."

Here's a term the right wing should learn. It's a lot simpler. It's "responsibility." That means if you have a war, or buy $400 billion worth of marginally effective airplanes - you have to pay for them.



When Obama took office the debt was around 10.6 trillion, now after 5 1/2 years of Obama leadership with 2 1/2 years to go, we are at over 17 trillion. What was that about responsibility?
"There is an art, it says, or, rather, a knack to flying. The knack lies in learning how to throw yourself at the ground and miss."
Life, the Universe, and Everything

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lawrocket

[Url]http://m.youtube.com/watch?v=pz2p4EQtEXs[/url]

Eventually they'll just stop making pie...



They will keep making pie, just not in the U.S. The trick is finding a way to take pie made in China.
"There is an art, it says, or, rather, a knack to flying. The knack lies in learning how to throw yourself at the ground and miss."
Life, the Universe, and Everything

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jgoose71

***> Here is a new term that the left (obviously not talking about Warren Buffet in this
>case) should learn, "fiduciary responsibility."

Here's a term the right wing should learn. It's a lot simpler. It's "responsibility." That means if you have a war, or buy $400 billion worth of marginally effective airplanes - you have to pay for them.



When Obama took office the debt was around 10.6 trillion, now after 5 1/2 years of Obama leadership with 2 1/2 years to go, we are at over 17 trillion. What was that about responsibility?

By his own definition, he's Un-American.
I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama
BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun

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[Reply]When Obama took office the debt was around 10.6 trillion, now after 5 1/2 years of Obama leadership with 2 1/2 years to go, we are at over 17 trillion. What was that about responsibility?



The Party of No seems to have zero problem spending lots of money. Considering that the POTUS can't spend a cent without the House letting him. The President is addicted to spending. And the House GOP is his greatest enabler...


My wife is hotter than your wife.

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I'm going to have to quit using my iphone to post if I can't stop hitting the spam button instead of reply :S

The problem is that you get to be a politician by being a people pleaser, and the way to please constituents is to

  • a. Spend money on them
  • b. Loudly vote against spending money on stuff they disagree with

    Wendy P.
    There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown)
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    lawrocket

    [Reply]When Obama took office the debt was around 10.6 trillion, now after 5 1/2 years of Obama leadership with 2 1/2 years to go, we are at over 17 trillion. What was that about responsibility?



    The Party of No seems to have zero problem spending lots of money. Considering that the POTUS can't spend a cent without the House letting him. The President is addicted to spending. And the House GOP is his greatest enabler...



    In this case we have to put it on the president and Harry Reid. Nothing makes it to the president to be signed without the Senate's approval. Harry Ried won't let anything come up on the Senate floor unless it's a bill that will make the liberal base happy.

    Meanwhile we have the president standing in front of America talking about how the tea party is a bunch of terrorists and the republicans are the party of no.

    John Boehner has agreed to a lot of spending just to get bills through the senate to the president and fight the "party of no" stigma, and has suffered tremendously in his own party to do it. It's either that or let the president continue to bad mouth the republicans from his loud microphone we call the white house (like its done any good) with a complicent media that does not question anything that comes from his mouth.

    Hopefully republicans will take the senate next election and we'll see taxes and spending come down.
    "There is an art, it says, or, rather, a knack to flying. The knack lies in learning how to throw yourself at the ground and miss."
    Life, the Universe, and Everything

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    >Hopefully republicans will take the senate next election and we'll see taxes and
    >spending come down.

    Sure. Right after they pass their $34 billion energy bill (gotta increase Army spending) and add ten billion or so to finish the F35, and buy a few more $7 billion Navy ships, perhaps a few measly tens of billions on a border fence - why, they'll get around to that spending cut right after that. After a much-needed vacation, of course. Spending all that money is hard work.

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    jgoose71



    Hopefully republicans will take the senate next election and we'll see taxes and spending come down.



    Spending under Reagan - UP, by a lot. National debt TRIPLED.
    Biggest % increase in debt under any president, ever.

    Spending under GWB - UP, a lot. 2 unfunded wars. Also GDP declined, as did the stock market. Biggest recession in generations.

    Yep, those Republicans sure know how to manage an economy.
    ...

    The only sure way to survive a canopy collision is not to have one.

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    ***What they did makes sense, and not simply because of the tax benefits.

    Tim Hortons is good at coffee, coffee is high margin, and BK is not good at coffee.

    ...................................................................................

    That would explain why you often see Tim Horton's coffee shops on the same building as Wendy's burger joints.
    Recent rumours have TH buying Cold Stone ice cream parlours .... probably for the same tax dodge.

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