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I don't know the tax details but apparently it is a loophole. This article is on Walgreen's but it is the same loophole other companies are using.
Offshoring America’s Drugstore
Walgreen Co. is the nation’s largest pharmacy retailer with 8,200 stores
and locations in all 50 states. It is America’s drugstore, and Walgreens
pharmacies play a key role in providing healthcare to our communities. Yet Walgreens recently stated that it may soon renounce its American “corporate citizenship” by offshoring its place of incorporation to Switzerland, a tax haven.
The reason for doing this is clear: to avoid paying its fair share of taxes. (The drug maker Pfizer recently made headlines by pursuing a similar reincorporation with AstraZeneca in Great Britain for the same tax purpose.) This reincorporation would take place primarily on paper – essentially a change of its corporate address. In all likelihood, Walgreens would not move its headquarters,
employees or supply chains to Switzerland. But it could cost U.S. taxpayers $4 billion over
five years, leaving other businesses and American families to pick up the tab. This tax maneuver is made possible by a loophole that allows American companies to reincorporate offshore, typically in a tax haven, when just 20% of its stock is owned outside of the United States.
It is called a corporate inversion, and so far, CVS hasn't done it (and that is the company that you referenced).
Pro Tip: When someone says "avoid paying its fair share of taxes" you can generally be assured that the person making the statement has very little understanding of the issues involved. When they follow it up by saying how much the activity is going to "cost" the US taxpayers, it makes it clear that the writer is a hack.
Simple question for you (and anyone else who cares to answer): Do you pay the least amount of tax to the government that the law allows, or do you knowingly and willingly pay much more than the law requires?
It is called a corporate inversion, and so far, CVS hasn't done it (and that is the company that you referenced).
Pro Tip: When someone says "avoid paying its fair share of taxes" you can generally be assured that the person making the statement has very little understanding of the issues involved. When they follow it up by saying how much the activity is going to "cost" the US taxpayers, it makes it clear that the writer is a hack.
Simple question for you (and anyone else who cares to answer): Do you pay the least amount of tax to the government that the law allows, or do you knowingly and willingly pay much more than the law requires?
The "average person" understands that he has no choice in paying taxes; it's taken out of wages.No matter what sophisticated or complex issues they have "very little understanding of" they understand that the businesses are doing well and are doing something for which they don't have the practical option. I agree that entities pay the least possible taxes. The laws should be restructured to make transactions having little basis in economic reality being used to shift taxes towards working people who can't handle any more burden.
Last edited by PJSaturn; 12-10-2016 at 05:41 PM..
Reason: Corrected typo at user's request.
I don't know the tax details but apparently it is a loophole. This article is on Walgreen's but it is the same loophole other companies are using.
Offshoring America’s Drugstore
Walgreen Co. is the nation’s largest pharmacy retailer with 8,200 stores
and locations in all 50 states. It is America’s drugstore, and Walgreens
pharmacies play a key role in providing healthcare to our communities. Yet Walgreens recently stated that it may soon renounce its American “corporate citizenship” by offshoring its place of incorporation to Switzerland, a tax haven.
The reason for doing this is clear: to avoid paying its fair share of taxes. (The drug maker Pfizer recently made headlines by pursuing a similar reincorporation with AstraZeneca in Great Britain for the same tax purpose.) This reincorporation would take place primarily on paper – essentially a change of its corporate address. In all likelihood, Walgreens would not move its headquarters,
employees or supply chains to Switzerland. But it could cost U.S. taxpayers $4 billion over
five years, leaving other businesses and American families to pick up the tab. This tax maneuver is made possible by a loophole that allows American companies to reincorporate offshore, typically in a tax haven, when just 20% of its stock is owned outside of the United States.
That's called tax inversion something Obama didn't seem to care to do anything about in 8 years. He most certainly knows about this loophole. I don't believe he ever mentioned it once. Nor did Hillary Clinton.
We order pizza online, so it only makes sense that we'd be able to order other foods using technology.
Just hire employees to cook the food, and maybe one or two employees to monitor the seating area. Before too long, maybe we'll have machines to cook the food.
It is called a corporate inversion, and so far, CVS hasn't done it (and that is the company that you referenced).
Pro Tip: When someone says "avoid paying its fair share of taxes" you can generally be assured that the person making the statement has very little understanding of the issues involved. When they follow it up by saying how much the activity is going to "cost" the US taxpayers, it makes it clear that the writer is a hack.
Simple question for you (and anyone else who cares to answer): Do you pay the least amount of tax to the government that the law allows, or do you knowingly and willingly pay much more than the law requires?
Your question makes no sense. The average person has no choice because taxes are taken straight out of their pay check.
The "average person" understands that he has no choice in paying taxes; it's taken outof wages.No matter what sophisticated or complex issues they have "very little understanding of" they understand that the businesses are doing well and are doing something for which they don't have the practical option. I agree that entities pay the least possible taxes. The laws should be restructured to make transactions having little basis in economic reality being used to shift taxes towards working people who can't handle any more burden.
If the US ended it's policy of taxing world-wide income (like the majority of other countries) then we would see an end to corporate inversions. And a corporate inversion is absolutely based in economic reality - the reality of significantly reducing their tax burden.
Last edited by TaxPhd; 12-06-2016 at 03:48 PM..
Reason: Spelling error correction.
Your question makes no sense. The average person has no choice because taxes are taken straight out of their pay check.
It makes a lot of sense to a great many taxpayers. If your financial life is so simple that you have no options, than it isn't relevant to you. But a great many taxpayers are able to make a lot of choices that can have a significant impact on their overall tax burden.
But you wanted to make this about you, so I'll play along. Your taxes are taken out of your check, and you believe that you have no options. Fair enough. When you prepare your federal tax return, and after all of your information is put into the return, and you learn that owe an additional $100 to the Feds, do you instead cut the Feds a check for $2,000, because you hadn't yet paid "your fair share?" Or do you cut them a check for $100, because that is what the law requires of you?
We order pizza online, so it only makes sense that we'd be able to order other foods using technology.
Just hire employees to cook the food, and maybe one or two employees to monitor the seating area. Before too long, maybe we'll have machines to cook the food.
Those of us in the IT sector started losing jobs to Robotic Process Automation back in 2006 when Technology took a giant leap in the ability to do extremely more with extremely less. When the Banking sector were given nearly 0% interest loans from the gov't, the banks that didn't need the funds to stay afloat used the money to update their technology to where 10,000's of jobs were simply wiped out of existence. I watched it happen at a bank data center (not a call center) where over a weekend 1400 jobs became 60 jobs in the US and 18 outside of the US. As more technology got implemented over the past decade those 60 jobs went to 0 as of last year. The only people in those buildings full time now are security personnel.
Wow. That's pretty extreme. I'm stunned. I've never heard of anything like that. Just for my own edification, can you please point me to some sources where I can read up on this? I'm just amazed (and not in a good way) that in a matter of a few years 1400 jobs in IT became 60+18, and subsequently to 0+18. What types of new technology enabled this?
Or is this the result of outsourcing -- the work done by 1400 employees was outsourced to a company that does the work and sells the result to the bank?
Which will result in layoffs. So we're back where we started.
I'd like to know how many here will now buy Carrier Air conditioners to reward them for leaving 800 jobs here (which so many seem to cheer here, despite the 1300 jobs still going) I myself have never had one...know why? They are extremely expensive compared to Westinghouse, Maytag and other made overseas brands. I can't afford an $800 air conditioner instead of a $200 one to make a point, and neither can most.
It sounds like you are referring to a window air conditioner, or a portable one. Once you go to central AC, light commercial AC and heavy commercial AC, it is a different story.
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