PLEDGE NOW
Poutine Whoppers? Why Burger King Is Bailing Out For Canada
A Tim Hortons' coffee cup is seen in New York, Wednesday, July 22, 2009.  (AP)

A Tim Hortons’ coffee cup is seen in New York, Wednesday, July 22, 2009. (AP)

The news this week that iconic American fast food giant Burger King is scooping up Canadian coffee and doughnut chain Tim Hortons (there’s really no apostrophe there, sorry) led many Wall Street analysts to wonder if the merger was meant for corporate tax inversion.

That seems to be the case, with the acknowledgement this morning that the newly reconstituted breakfast-and-burger company will be headquartered in Canada.

But what IS tax inversion, and how does a tried and true American company like Burger King go about changing its tax rates simply by breaking off a little piece of our northern neighbor’s culinary heritage?

In July, we talked to New York Times and CNBC columnist Andrew Ross Sorkin, who has by his own account made a habit of trying to “shame” companies who pursue a corporate tax inversion strategy like the one Burger King is eyeing with its merger plans today.

“The best example of all of this is a transaction with Mylan, the third-largest generic drug maker in the country,” Sorkin told us in July. “The top tax rate in the country is 35 percent. That company currently pays 25 percent. That company is now gonna move to the Netherlands and has said that they expect within several years to be paying in the high teens. So you can see, how¬†simply by leaving they will go from a 25 percent rate to something in the high teens.”

“The idea that companies are going to leave the country to get a lower tax rate seems semi-preposterous to me.”

Do you agree? Do you see the corporate logic here? Should American companies remain in America and pay American tax rates? Or use legal business means to pursue a better bottom line?

Let us know in the comments below, or on Facebook, Tumblr and @OnPointRadio.

Please follow our community rules when engaging in comment discussion on this site.
ONPOINT
TODAY
Jul 31, 2015
Former University of Cincinnati police officer Ray Tensing, second from left, appears before Judge Megan Shanahan at Hamilton County Courthouse for his arraignment in the shooting death of motorist Samuel DuBose, Thursday, July 30, 2015, in Cincinnati. Tensing pleaded not guilty to charges of murder and involuntary manslaughter. (AP)

A new police murder charge and a black man dead in Ohio. Iran Deal heat and Huckabee. Malaysia Air. Our weekly news roundtable goes behind the headlines.

Jul 31, 2015
In this undated photo provided by the Wildlife Conservation Research Unit, Cecil the lion rests in Hwange National Park, in Hwange, Zimbabwe. Two Zimbabweans arrested for illegally hunting a lion appeared in court Wednesday, July 29, 2015. (AP)

Canned lion hunts and the fate of big game in Africa, after the outrage over Cecil.

RECENT
SHOWS
Jul 31, 2015
In this undated photo provided by the Wildlife Conservation Research Unit, Cecil the lion rests in Hwange National Park, in Hwange, Zimbabwe. Two Zimbabweans arrested for illegally hunting a lion appeared in court Wednesday, July 29, 2015. (AP)

Canned lion hunts and the fate of big game in Africa, after the outrage over Cecil.

 
Jul 31, 2015
Former University of Cincinnati police officer Ray Tensing, second from left, appears before Judge Megan Shanahan at Hamilton County Courthouse for his arraignment in the shooting death of motorist Samuel DuBose, Thursday, July 30, 2015, in Cincinnati. Tensing pleaded not guilty to charges of murder and involuntary manslaughter. (AP)

A new police murder charge and a black man dead in Ohio. Iran Deal heat and Huckabee. Malaysia Air. Our weekly news roundtable goes behind the headlines.

On Point Blog
On Point Blog
Our Week In The Web: July 31, 2015
Friday, Jul 31, 2015

A regular reminder that RTs are not endorsements, links have specific authorship and patience is a virtue.

More »
1 Comment
 
Q & A: Scott Walker On The Iran Deal, Huckabee Comments
Monday, Jul 27, 2015

Wisconsin Gov. Scott Walker explains his opposition to the Iran Deal, his record of statewide electoral victory and why he feels he’s set to win the 2016 Republican Presidential nomination.

More »
Comment
 
Q & A: Carly Fiorina On Trump, Sexism, And Being Cut From The GOP Debate
Monday, Jul 27, 2015

Republican Presidential Candidate Carly Fiorina, the former CEO of computer giant Hewlett-Packard, joined guest host John Harwood to talk Donald Trump, the upcoming Republican candidate debate and sexism in modern life.

More »
Comment