Should there be an ever increasing complaint in the US that businesses are not paying their fair share of tax? The Burger King / Tim Hortons merger is an example.
People are offended that some are avoiding tax due the US treasury. It is unpatriotic to avoid tax is the theme. There is an obvious flaw in the argument.
To believe the corporations are doing something unfair, you must believe that the tax raising statute is somehow moral. It is not and it should not be. Tax statutes are to raise the money the government needs in the most efficient way. (least cost to the economy)
The current American version fails on that score.
Tax statutes are a labyrinth of rules and exceptions to those rules. There is little if any underlying philosophy or moral fabric. Just like contract law, the person who wrote the contract will have the exact words used against them when there is a dispute. The government writes the rules. Live within or improve them.
Presently, the US possesses, to their disadvantage, the highest corporate tax rates in the world. Little wonder people try to avoid them
It is time for the government to recognize an old idea.
“If you continue to do what you have always done, you will continue to get what you have always gotten.”
In this case, reverse mergers and subsidiaries in Ireland and Luxemburg.
Don Shaughnessy is a retired partner in an international public accounting firm and is presently with The Protectors Group, a large personal insurance, employee benefits and investment agency in Peterborough Ontario. Contact: email@example.com