What used to be America’s Burger King will now be a Canadian based company according to details of the recently announced merger with Canada’s Tim Hortons, the largest fast food chain in Canada.
While the merger of the two firms will create the third largest fast food corporation in the world and a greater competitive advantage for both in the marketplace, Burger King’s decision to move its corporate headquarters to Canada is what is called an “inversion.”
This is where a corporation moves offshore in order to reap huge tax savings. The United State corporate tax rate is 35%, while Canada’s is a mere 15%. Lower U.S. corporate tax rates to 15% you say?
Note that most corporations based in the United States already using numerous loopholes in the corporate tax code here on average pay more like 5%. Some, like General Electric pay nothing at all, while reaping actual…
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