This merger announcement was a surprise to me because I would not have guessed that Burger King wanted to move out of the US and join with a maker of doughnuts and coffee. It does make sense after looking over the deal. Burger King wants to expand and they can now get good coffee in the store and Tim Horton's can have an easier time expanding to the USA where they have failed before. It also shows that the tax rate in the USA is way too high for corporations. Why stay here when the country next door is offering a lower tax rate and still allows you to trade in the USA. I do not know why we are surprised this movement to leave the country is happening. With the good open borders we have now and quick movement of information and goods its like each country there is no reason to pay more to do the same business when you can save shareholders millions moving.
It is no different from a company moving from New York to Florida or Texas because of the tax benefits. The states try to attract new business and they do that with lower taxes and other benefits. For the USA to keep current business headquarters and attract new ones we will have to have a competitive tax rate of 20% or less and give legal protection to our corporations. Corporations have incentives and act on those incentives. Our government should recognize what incentives businesses have and convince them with better incentives to stay. They should be carrot incentives and not punishments because extra taxes or punishments will only create hatred and resentment. Nice benefit incentives is the way to go.
If we don't see a change soon, I think we could lose even more major companies.
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