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.
Oct 9, 2015
A manhole begins to spill over with floodwaters as high tide approaches at Dorchester Road at Sawmill Branch Canal in Summerville, S.C., Thursday, Oct. 8, 2015.  (AP)

Russia goes big in Syria. The US hits a hospital in Kunduz. Hillary flips on the TPP. An epic flood in South Carolina. Our weekly news roundtable goes behind the headlines.

Oct 9, 2015
In this Wednesday, Sept. 9, 2015, photo, Devlin D'Zmura, a tending news manager at DraftKings, a daily fantasy sports company, works on his laptop at the company's offices in Boston. (AP)

Fantasy football scandal, and the wild, booming betting world of fantasy sports.

Oct 8, 2015
US singer Patti Smith performs during the Way Out West music festival in Gothenburg, Sweden, Saturday, Aug.15, 2015.  (AP)

Iconic rocker, poet of punk, and National Book Award-winning author Patti Smith joins us to talk about her new memoir, “M Train”.

Oct 8, 2015
In this Aug. 2, 2012 file photo, local newspapers show stories about the controversial strategy to bail the government out of a financial hole, at a restaurant along Seven Mile Beach on the outskirts of George Town on the Cayman Islands. The Cayman Islands have lost some of their allure by abruptly proposing what amounts to an income tax on expatriate workers who have helped build the territory into one of the most famous or, for some people, notorious offshore banking centers that have tax advantages for foreign investment operations. (AP)

Trillions of dollars are now stashed in protected tax havens around the world, leaving societies’ bills to those at home. We’ll dig in.

On Point Blog
On Point Blog
Rep. Daniel Webster: ‘I’m Gonna Sell This Message’
Tuesday, Oct 6, 2015

When House Speaker John Boehner (R-OH) announced his retirement and resignation from his position last month, it surprised both his Party and the Washington political establishment.

More »
Our Week In The Web: October 2, 2015
Friday, Oct 2, 2015

We say hello again to our email address (since so many of you did this week) and goodbye to the Log Lady.

More »
Interview With Sen. Bernie Sanders: ‘Count Me As A Radical’
Thursday, Oct 1, 2015

Vermont Sen. Bernie Sanders is making waves in the 2016 Presidential race, and he joined us today from the US Capitol to explain how his campaign message is connecting with voters around the country.

More »