Burger King looking to become a Canadian corporation because of the United States’ insane corporate tax code

U.S. fast food giant Burger King is looking to buy Tim Horton’s in Canada, and move its corporate headquarters to Canada. It’s a tax move called corporate inversion that’s been taken by companies that aren’t in the public eye like Burger King, and it’s been a bone of contention between Democrat and Republican lawmakers.

Democrats think that the solution to the problem lies in making it more difficult for American corporations to buy smaller companies abroad, to justify moving out of the U.S. Keeping businesses in America with competitive tax rates is the solution Republicans support. As for this particular case, Burger King is looking to save around 20 percent in taxes.

Canada’s corporate tax rate is 15 percent, according to the Organization for Economic Cooperation and Development. The U.S. rate is 35 percent, the highest among OECD nations, although most businesses pay significantly lower effective rates.

The Washington Examiner pointed out one obvious problem. In addition to not being competitive, there is no such thing as a standard effective tax rate for businesses in the U.S. As we head into the mid-term elections, tax reform should be an issue of concern, especially corporate taxes.

America needs to be encouraging businesses to move here with low tax rates. President John F. Kennedy understood that, when he decreased taxes - it is always better to collect smaller amounts from more people and businesses than it is to continually increase tax burdens on few. As Burger King is showing, the few can choose to just move away.


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