Hot off the press - Burger King and Canada's Tim Hortons are in merger talks. If the deal holds, it will create the third-largest fast-food restaurant chain in the world. (18,000 restaurants) So what's the motive? For Tim Hortons, according to company sources: "A key driver of these discussions is the potential to leverage Burger King's worldwide footprint and experience in global development to accelerate Tim Hortons growth in international markets". For Burger King, it would move the Miami headquarters to Canada, a lower-tax jurisdiction. (America has the highest corporate rate in the Western world)
This move will draw heavy criticism from the Obama administration, which as I explained in an Aug. 16th blog, is trying everything in its power to stop U.S. corporations from dodging the American tax-man. Perhaps someone could interrupt President Obama's golf game and suggest he simply lower tax rates to a more competitive level. Problem solved.
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