Power of Story
Send a Tweet        
- Advertisement -
OpEdNews Op Eds

Tax-Dodging Deal Fails Thanks To Obama's Inversion Rules -- And Us

By   Follow Me on Twitter     Message Dave Johnson     Permalink
      (Page 1 of 2 pages)
Related Topic(s): , Add Tags Add to My Group(s)

View Ratings | Rate It

opednews.com

Author 4387
Become a Fan
  (12 fans)
- Advertisement -

Reprinted from Campaign For America's Future

From youtube.com/watch?v=-o-zPXB_F6Y: Major US companies are moving abroad to avoid high corporate taxes. It's called corporate inversion and results in higher profits for shareholders.
Major US companies are moving abroad to avoid high corporate taxes. It's called corporate inversion and results in higher profits for shareholders.
(Image by YouTube)
  Permission   Details   DMCA

Politicians often don't know about a problem -- never mind fix it -- unless people organize and make their feelings known. When you sign an online petition, send an email and especially donate to a cause, it can make a real difference. In the case of companies "renouncing their citizenship" in order to dodge their taxes, it really did work.

- Advertisement -

You probably heard that companies like Burger King and others were "renouncing their citizenship" as a scheme to get out of paying taxes they owe us. They were using a complicated transaction called an "inversion" to make it seem like these U.S. companies were not U.S. companies. To make it simple, they would buy a non-U.S. company, then claim that the non-U.S. company was the "parent" company. Then they would claim they no longer had to pay certain U.S. taxes, including taxes on already-made, non-U.S. profits they were hoarding outside the U.S.

A company called AbbVie was preparing to do one of these inversions, to get out of paying its U.S. taxes. In September the Obama administration introduced new rules cracking down on these companies. The administration was responding to the public outcry that was generated by organizations like Campaign for America's Future and others, including our online petitions.

Then last month AbbVie cancelled the tax-dodging inversion deal. AbbVie had billions of already-booked profits stashed outside the U.S., and would have been able to get out of paying the taxes it owed. But the new rules from the Obama administration would make them pay the taxes they owed, so they cancelled the deal. The New York Times reported, "The unraveling of the merger came swiftly, just weeks after the Treasury Department announced new rules taking aim at inversion deals. [...] In announcing the termination of the deal, AbbVie lashed out at the Obama administration for changing the rules so abruptly."

- Advertisement -

Explaining Complex Issues

One of the things that helps giant corporations get away with various forms of tax-dodging like an inversion is that most people have a hard time making their way through the complexities involved. At CAF we work to explain these complexities in ways more people can understand. We've been writing and writing about corporate inversions and other schemes, explaining how they work and what is wrong with them. Other publications like The Huffington Post, AlterNet, Truthout, Daily Kos, Crooks and Liars and others have carried our work.

CAF posts explaining inversions, the Walgreens and Burger King inversions and general offshore tax-dodging schemes included:

Next Page  1  |  2

 

- Advertisement -

View Ratings | Rate It

Dave has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon



Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Follow Me on Twitter

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Related Topic(s): , Add Tags
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Three Charts To Email To Your Right-Wing Brother-In-Law

Upcoming Trans-Pacific Partnership Looks Like Corporate Takeover

Actually, "the Rich" Don't "Create Jobs," We Do

Now We Know Why Huge TPP Trade Deal Is Kept Secret From The Public

Does Clinton Really Oppose TPP? There Is A Test For That

Will TPP Kill The Post Office?