Buffett Burger King Funds Flip Obama’s Inversion Calculus
By Jonathan Allen, Richard Rubin and Noah Buhayar Aug 26, 2014 2:52 PM ET
Billionaire Warren Buffett was an ally of President Barack Obama during the 2008 presidential campaign and the force behind Obamas Buffett Rule, designed to increase tax bills for the wealthiest Americans.
Now, the second-richest man in the U.S. has dented Obamas effort to stamp out corporate inversions.
Buffetts financing of Burger King Worldwide Inc. (BKW)s $11.4 billion purchase of the Canadian fast-food chain Tim Hortons Inc. (THI) challenges Obamas argument that inversions are unpatriotic and gives defenders of the practice leverage to make their case.
Warren Buffett has nothing to be defensive about -- this looks like a smart investment that should benefit his shareholders, said Tony Fratto, a Treasury Department and White House official in President George W. Bushs administration. As for the White House and Treasury, I hope they learn something here.
The lesson, business advocates say, is twofold: Such deals that move companies addresses out of the U.S. are often about bigger long-term profits, not just the tax benefits Washington focuses on, and attempts to pressure markets by shaming companies are misguided.
Burger King Chief Executive Officer Daniel Schwartz framed the tax effect as minimal and peripheral -- not central -- to his companys decision to merge and put the combined companys address in Canada.
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http://www.bloomberg.com/news/2014-08-26/buffett-burger-king-funds-flip-obama-s-inversion-calculus.html
WhiteTara
(29,705 posts)losing a bucket of money.
BaggersRDumb
(186 posts)profits.
Our stupid, and I mean GOD DAMN STUPID idea that capitalism the way we do it works?
Fucking morons, I dont care if it is Buffett or who it is, this system works for the one percent ONLY.
You get that?
I will say it again, capitalism the way WE do it works for the ONE PERCENT ONLY.
Everybody else suffers....EVERYBODY else