Workers & Economic Inequality

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Inversion delusion

TCF fellow, Edward D. Kleinbard has been quoted in an article about corporate tax inversions in the Rutland Herald.

On Monday, the Tax Policy Center in Washington held a panel discussion on the subject of “corporate inversions” — the practice of taking over a small company in someplace like Ireland or the Netherlands, and then using that takeover to “relocate” to the foreign country for tax reasons. One of the panelists was John Samuels, chief tax lawyer for General Electric.

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Tags: taxes, tax system, tax inversions, corporate taxes, corporate tax, corporate profit

Lew Says Administration Close to Decision On Inversions; Others Debating Possibilities

TCF fellow, Edward D. Kleinbard has been quoted in an article about corporate tax inversion on Bloomberg BNA.

The extent of any pending executive action to limit inversions remains uncertain despite Treasury Secretary Jacob J. Lew's pledge to decide soon.

He has yet to tip his hand on how the department could address the recent rise in tax-driven corporate mergers, aside from backing retroactive changes favored by congressional Democrats.

Debate around that and other options continues as potential administrative changes are considered along with legislative possibilities, though Senate Finance Committee Chairman Ron Wyden (D-Ore.) and ranking member Orrin Hatch (R-Utah) haven't found common ground to date.

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Tags: tax system, tax rules, tax inversions, corporate taxes, corporate tax, corporate profit

Burger King’s claim that move won’t save taxes draws skepticism

TCF fellow, Edward D. Kleinbard has been quoted in a Sun Sentinel article about Burger King movings its headquarters to Canada.

Daniel Schwartz, chief executive officer of Burger King Worldwide, said in August that he doesn't expect "meaningful tax savings" when the company adopts a new legal address in Canada through the purchase of a doughnut chain there.

That may have blunted criticism from U.S. politicians who are calling the address change a tax dodge. But Schwartz's statement is hard to square with the reality of the countries' tax laws, according to experts on both sides of the border.

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Tags: taxes, taxation, tax inversions, corporate taxes, corporate tax, corporate profit

A mountain of money is almost a burden to a firm that doesn’t buy big

TCF fellow, Edward D. Kleinbard has been quoted in an article about Apple's cash reserves on Hispanic Business.

If, as expected, the launch of the new iPhone and Apple's iWatch health monitor leads to record sales, more money than ever will pour in to Apple's enormous pile of cash.

At the last count, at the end of June, Apple had $164.5bn of "cash, cash equivalents and marketable securities" on its balance sheet - up a heady $18bn on just nine months earlier. The vast majority of that money - $137.7bn - is held by Apple's foreign subsidiaries. From September 2013, its overseas cash mountain increased by $26bn.

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Tags: taxes, tax inversions, corporate taxes, corporate tax, corporate profit, apple

Burger King says it’s ‘not moving’ and ‘will continue to pay all’ of its taxes

TCF fellow, Edward D. Kleinbard has been quoted in an article about Burger King moving its headquarters to Canada on Politifact.

When Burger King, the American fast-food icon, announced a deal to join forces with the Canadian coffee-and-donuts giant Tim Hortons, the reaction was swift. Burger King, it turned out, would become part of a Canadian parent company, potentially resulting in significant savings on what it pays in U.S. taxes -- a maneuver known as a corporate tax "inversion." Politicians, and ordinary Americans, cried foul.

Sen. Sherrod Brown, D-Ohio, urged customers to bring their fast-food cravings to two companies that have long operated from Ohio -- Wendy’s and White Castle. "Burger King has always said ‘Have it Your Way,’ " Brown said in a statement. "Well, my way is to support two Ohio companies that haven’t abandoned their country or customers."

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Tags: taxes, tax inversions, corporate taxes, corporate tax, corporate profit

Mergers like Burger King-Tim Horton’s costing federal treasury

TCF fellow, Edward D. Kleinbard has been quoted in an article about Burger King moving its headquarters to Canada in the Dayton Daily News.

Burger King’s purchase of Tim Hortons and its plan to shift corporate headquarters to Canada doesn’t mean you won’t be able to get a Double Whopper with cheese any longer. But the merger may cost the federal treasury a few hundred million dollars in corporate taxes.
The move by the U.S. hamburger giant to acquire the Canadian-based doughnut and coffee chain is a vivid example of a growing trend by large American companies such as Eaton Corp. of Greater Cleveland to take advantage of lower corporate tax rates charged by foreign governments, such as Canada, Great Britain and Ireland.

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Tags: taxes, tax inversions, corporate taxes, corporate tax

 

Workers & Economic Inequality

Workers & Economic Inequality

In recent decades, and especially since 2000, the richest Americans have enjoyed soaring income and wealth while the rest of the population's living standards have stagnated. The Century Foundation was one of the first institutions to raise serious concerns about these trends and propose ideas for improving economic conditions for all Americans- not just the fortunate few.

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