Burger King Planning To Leave America

[Hardscrable]

Last available monthly tax revenue stats showed an all time record for $$$ paid in to the IR S. Yet "we" still spent more than came in. So ... Corporate, personal...when will it ever be enough ? I can guaran-damn-tee you that if income ever exceeds out go, rather than reducing debt we will spend more. A public corporation's responsibility is the stock holder's best interest...not Uncle Sam's.

 

[JTScribe]

As a business decision, it is. The move wouldn't be made if there weren't gain of some sort to be made from it.

But taking the bigger picture view, the fact that we can have this discussion on 5 different levels of taxation and the consequences to businesses and consumers means it's not only not simple, it's too flippin' complicated. (I'll leave the notion that taxing businesses is ridiculous anyway out of it for now.)


This is such an overly simplistic argument that it should die a quick and unresurrectable death.


I think he was channeling past INGO threads, doc.

Then what magical money tree do corporations get money from, if it's not from the customers who do business with them? Yes, it's not a direct transfer, but in the end corporations remit taxes based on receipts from customers.

 

[88GT]

Then what magical money tree do corporations get money from, if it's not from the customers who do business with them? Yes, it's not a direct transfer, but in the end corporations remit taxes based on receipts from customers.

You must have misunderstood. I didn't say it wasn't technically correct, I said it was overly simplistic and failed to adequately convey the dynamics of the situation.

 

[ryknoll3]

Just curious. For those that poo-poo American corporations from picking up and moving to more favorable tax locations, do you track and remit taxes for EVERY SINGLE ONE of your online purchases each year? If not, how are you any different? How are you not worse since they're not breaking any laws, and you are?

 

[Vigilant]

Can't blame them. Taxes in the US are ridiculous.

Right now, I'm working 4 months of the year essentially just to pay taxes. Kind of insane when you think about it. And I don't feel like my hard earned money is going towards anything I'd want it to go to, and I don't feel like my politicians are working for me at all. Essentially, taxation without representation.

Try owning a business, working the four months to pay your personal taxes, and tossing in another four months for corporate taxes!

 

[HoughMade]

Try owning a business, working the four months to pay your personal taxes, and tossing in another four months for corporate taxes!

If you own a small business and pay personal and corporate taxes, you're doing it wrong. All I'll say is- drain the pond.

 

[zippy23]

american tax policy is unfavorable for business. Why would you stay here if you can have your stores here but run it from a country that is more favorable? I'd do the same thing. When will the politicians see this? Never, because thats not what its about for them.

 

[Vigilant]

If you own a small business and pay personal and corporate taxes, you're doing it wrong.

The business pays taxes, and I pay taxes on the "salary" I sometimes draw as well. Not to mention taxes on any "cash disbursements" that may come along. Maybe my accountant needs to be better?

 

[Gadgetmonster]

In the past 10 years, 47 companies have relocated overseas for lower tax rates. That compares to only 29 in the previous 20 years.
More and more companies are leaving the U.S. for countries with better tax rates - Jul. 7, 2014

And there will be counterpart corporate renunciations of U.S. citizenship too. That will rankle, as in the case of Walgreens, ironically ‘America’s Pharmacy’ that might turn Swiss. The Walgreens inversion plan isn’t official, and still may not happen. But anExecutive Summary by Americans for Tax Fairness says Walgreens’ move could cost taxpayers $4 billion over five years. Walgreens won’t be alone if it follows through. http://www.forbes.com/sites/robertwood/2014/07/30/more-people-and-now-companies-exit-u-s-taxes/

So as the big corporations leave the rest of us have to pony up more to cover the government's loss of tax revenue. Small business beware.

 

[HoughMade]

The business pays taxes, and I pay taxes on the "salary" I sometimes draw as well. Not to mention taxes on any "cash disbursements" that may come along. Maybe my accountant needs to be better?

I say this as a small businessman and in no other capacity, and I an speaking only about income taxes, but if the corp. doesn't make much of a profit, there's not much in taxes to pay. One way to not make a profit and stay happy is to pay compensation rather than have the corp. hold onto the money....but I am not a tax professional. I am speaking in very general terms and not every business is structured to allow this.

 

[LP1]

Not to detract from your point, but as far as personal taxes go (all taxes on individuals of every sort), the US has some of the lowest in the developed nations. Income tax is in the low-middle but the other taxes such as VAT and sales are much lower which brings that number down. And the richer you are the smaller percentage you pay which is backwards from almost everywhere else:

How Low Are U.S. Taxes Compared to Other Countries? - The Atlantic

Further, though the corporate tax RATE is high in the US, the actual amount of taxes corporations pay tends to be a lot lower because there are far more exemptions and ways corporations can game the system. A better comparison would be how much similar business actually pay across the developed countries. IIRC from my econ class days, it's actually less than most for many businesses. Restaurants and retail establishments are in a tricky position because their physical presences are by necessity located within the US which gives them less advantage tax-wise than a business that can be more multi-national in its vertical integration.


*note: I have no dog in this discussion, it was just interesting to me to muse on how the media is spinning this story because it certainly isn't as simple as many make it out to be.

Nobody wants to listen to your rational argument - all they want is a good sound bite.

 

[jblomenberg16]

BUT BUT BUT....I thought Obama and Co. were saying that we need to tax big corporations more so they pay their fair share!

 

[Henry]

The business pays taxes, and I pay taxes on the "salary" I sometimes draw as well. Not to mention taxes on any "cash disbursements" that may come along. Maybe my accountant needs to be better?

May want to consider an S corp.

 

[other dave]

On the bright side we might be able to get Tim Horton donuts at Burger King.

On the not so bright side, if Burger King moves to Canada how long will it be before "no guns allowed" show up at all Burger King's?

 

[Henry]

Paying even more taxes is patriotic!
-bathhouse barry


Of course, King George thought the same thing.

Others disagreed....and it did not work out for that sonofa***** George.

https://encrypted-tbn0.gstatic.com/...MgRFlIm_saVLO7JYKXNZdmj4kTdFaqH66nlkxnei3-G9m

 

[Fred78]

I'm looking forward to the price of their food to drop with their new found profits, or maybe the employees will get a raise. Yea right, I won't hold my breath on that one.

 

[jedi]

I do agree with the savings that move can provide. BUT the price of there food will not go down one bit!!!!!!!!!

I'm looking forward to the price of their food to drop with their new found profits, or maybe the employees will get a raise. Yea right, I won't hold my breath on that one.

Last available monthly tax revenue stats showed an all time record for $$$ paid in to the IR S. Yet "we" still spent more than came in. So ... Corporate, personal...when will it ever be enough ? I can guaran-damn-tee you that if income ever exceeds out go, rather than reducing debt we will spend more. A public corporation's responsibility is the stock holder's best interest...not Uncle Sam's.

Hardscrable beat me to it. Why are you mad that the price of the food will NOT go down and/or the wages of the workers will not go up?
A business's sole focus is to make money. If they don't then they go out of biz.
Since the customers have agreed to buy a whopper jr at $1 and the cashier has agreed to work at BK for $7.25/hr why does that need to change?
Customer won't buy 2 whopper jrs if the price was $.75 per unit will they?
Cashier is not going to work extra hours (for free) if you increase their pay to $10.25/hr.
More over the move is saving money that means the business makes more money which is after all what a biz is suppose to do.

 

[Hardscrable]

Burger King will still pay US rate on profits EARNED in the US but not on profits earned elsewhere unless that profit is brought back. It won't be brought back since headquarters will not be in the US. If our corp. rates were in line with others worldwide, this would probably not happen. The problem as I see it is US tax rate not BK wanting to maximize net ( after tax ) profit. Corps are in business to make money & maximize profit not maximize involuntary donations to Uncle Sam.

 

[Hardscrable]

I'm looking forward to the price of their food to drop with their new found profits, or maybe the employees will get a raise. Yea right, I won't hold my breath on that one.

Price of food and wages are competition driven and to certain degree up to the franchise (according to market in that local) except for a few corp stores. This move has very little to do with your local BK. I would not expect it to change prices or wages paid. Stockholder gains are shared by investors which includes average Joe's 401K as well as Wall Street types. Corp profits also fuel/fund expansion which expands economic development ( construction, jobs, etc). That' s how our system works. It's not a new concept.

 

[HoughMade]

Not surprised. The US has been anti-monarch since about 1776.

[video=youtube;t-9pDZMRCpQ]https://www.youtube.com/watch?v=t-9pDZMRCpQ[/video]