Walgreens shouldn’t have a say about how the U.S. government does anything.

[elleng]

by Robert Reich

Dozens of big U.S. corporations are considering leaving the United States in order to reduce their tax bills.

But they’ll be leaving the country only on paper. They’ll still do as much business in the U.S. as they were doing before.

The only difference is they’ll no longer be “American,” and won’t have to pay U.S. taxes on the profits they make.

Okay. But if they’re no longer American citizens, they should no longer be able to spend a penny influencing American politics.

Some background: We’ve been hearing for years from CEOs that American corporations are suffering under a larger tax burden than their foreign competitors. This is mostly rubbish.

It’s true that the official corporate tax rate of 39.1 percent, including state and local taxes, is the highest among members of the Organization for Economic Cooperation and Development.

But the effective rate – what corporations actually pay after all deductions, tax credits, and other maneuvers – is far lower.

http://www.salon.com/2014/07/08/robert_reich_walgreen_shouldnt_have_a_say_about_how_the_u_s_government_does_anything_partner/?utm_source=facebook&utm_medium=socialflow

[ohnoyoudidnt]

1. If the sales are made in the U.S, taxes should be paid

regardless of where the company is owned on paper. Our tax laws are so fucked.

[redruddyred]

2. probably on purpose.

they're made by those who will profit from them.

[santamargarita]

3. Let them go! But they should not be allowed to do business here!

[Stuart G]

4. This company grew up in the Chicago area..

corporate is in Deerfield, Illinois. If it moves out of the USA, lots of people in this area will lose their jobs. I already know someone who has lost a job there, due to downsizing.

[mwooldri]

5. Would only make sense to HQ elsewhere if...

...the majority of their business is done elsewhere.

A US company deciding to rearrange itself so that it becomes a PO Box Company in the Cayman Islands owning the American company really doesn't make sense.

Walgreen's situation does make more sense in that it is merging with a large European drugstore company... but this merger may not be the best for Walgreen's anyway, tax avoidance or not.