Next time you consider chomping into a Burger King Whopper, you might think about the bite this fast food giant is trying to take out of the American taxpayer.
The company announced it will purchase beloved Canadian coffee and donut shop chain Tim Hortons. That purchase could help it dodge its U.S. tax obligations, shifting its burden to the rest of us American taxpayers.
While the prospect of avoiding taxes and raking in higher profits may sound appealing to the company’s top brass, the rest of us know we’ll have to make up the difference, or do with less public service as the tax revenue pool shrinks.
Burger King is pursuing the purchase as a process called a tax inversion. That is, when a U.S.-based firm buys a company in another country, and relocates its corporate headquarters. Even if most of the company’s managers and employees remain in the United States, the firm can take advantage of the other country’s lower tax brackets.
It’s a decision that Walgreens recently mulled but dropped after American taxpayers came together in protest of the move. But since 1983, approximately 75 corporations abandoned America through inversion, and at least 10 more corporate inversions are currently underway.
AFSCME opposes these corporate tax evasion schemes. We are urging members of Congress to enact the “Stop Corporate Inversions Act of 2014” (S.2360), introduced by Sen. Carl Levin, D-Mich. The measure would prevent U.S. corporations from claiming to be foreign companies unless they meet specified conditions.
We also support the Bring Jobs Home Act, introduced by Sens. John Walsh, D-Mo., and Debbie Stabenow (D-Mich.). The legislation would eliminate some tax incentives that corporate CEOs use to increase their profits by sending our jobs overseas.
To tell Congress to pass the “Stop Corporate Inversions Act of 2014,” send them a message here!
The above blog by Clyde Weiss is reprinted from the website of the American Federation of State, County, and Municipal Employees.
Photo: AP
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