My Prediction: A U.S. "Berlin Wall" of regulations
More and more companies are relocating their corporate headquarters to foreign countries to avoid high corporate taxes in the U.S.. An article in today's Daily Sun business section says that Burger King may move to Canada. Other companies have moved to Europe.
I heard on the news that this trend is being studied to see if it can be discouraged, perhaps with new regulations. That's why I predict a "Berlin Wall" of regulations. What was the purpose of the Berlin Wall? To keep people in! Yes, and now we need something similar to keep corporations from trying to escape higher taxes.
Walgreen Co. was considering moving but decided not to because they are afraid of a consumer backlash. Their income tax rate is 37.5%
Why don't we just lower the tax rate for U.S. corporations so they don't have to think about moving. I have heard it said that this will make them more competitive in foreign trade. If they make more money, they might end up paying the same amount of taxes with the lower tax rate.
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