Burger King Moves North to Canada for Tax Reasons.

[Toro]

Well, I enjoyed slogging through this one.

I read the article about an hour ago and decided to post it. However, Kaz beat me to it. Not much gets by Kaz.

Thanks.

Whatever the reason, you have a U.S. corporation merging with a Canadian corporation and moving it's headquarters to Canada.

That says something about who has the better deal.

The could have bought Tim Hortons and kept their headquarters in Miami.

But they didn't.

Miami vs. Canada.

The weather certainly wasn't the determining factor (I am only guessing).

What is really interesting about it is that in the 80s and 90s, Canadian companies were relocating to the US for tax reasons.

The Liberal government saw what was happening and started lowering the corporate tax rate, which the Conservatives continued when they came into office.

 

[Skull Pilot]

...and yet, the president does not set tax rates. Congress does, and the House is controlled by Republicans....

Who controlled the House when the latest corporate tax rate was enacted?

What's more important is which president signed it into law?

 

[Skull Pilot]

I think I understand what the Right wants. Even though Obama does not have the constitutional right to change tax rates, they want him to do it by executive order....

If the House passed a bill to lower corporate taxes do you think Harry would let the bill come up for a vote in the Senate?

 

[usmcstinger]

...and yet, the president does not set tax rates. Congress does, and the House is controlled by Republicans....

Unless Obama wants it, Reid will not allow a vote on decreasing the Corporate Tax Rate. The US rate is the highest in the world!

 

[midcan5]

From their Facebook page Burger King claims they are not moving their headquarters, we shall see. Funny but we were just in several Tim Horton's while traveling, they have changed some and now cater mostly to stops along the highways, a Wawa kinda of place for those familiar. Dunkin Donuts is similar. If Burger King moves to avoid the small amount they now pay in taxes they will lose our business and I will call them out as greedy bastards every chance I get.

Americans today in the upper middle and upper classes have lost their American values, their community sense, and their so called Christian values to a self centered narcissism, a Ayn Randian psychopathy, and a complete failure of responsibility to the people and the place, the nation that provides their benefits. Since we meet these people often today, I find their ideological robot like response kinda amazing. No longer does community matter. It may just be the beginning of the end of the American experiment of a better more civilized society.

If you love greed go on the FB page and sing their praises, if not do the old fashioned American thing.

"For anyone born after 1945, the welfare state and its institutions were not a solution to earlier dilemmas: they were simply the normal conditions of life - and more than a little dull. The baby boomers, entering university in the mid sixties, had only ever known the world of improving life chances, generous medical and educational services, optimistic prospects of a upward social mobility and - perhaps above all - an indefinable but ubiquitous sense of security. The goals of an earlier generation of reformers were no longer of interest to their successors. On the contrary they were increasingly perceived as restrictions upon the self-expression and freedom of the individual." Tony Judt 'Ill Fares the Land'

 

[Coyote]

4 Threads on the same topic merged.

 

[DrDoomNGloom]

...........The Right goes into a total drama queen melt down over this.........

ByStephanie CondonCBS NewsAugust 25, 2014, 5:16 PM
Senator: Boycott Burger King as it eyes move to Canada

• More +

As Burger King eyes moving its headquarters to Canada to lower its tax bill, a Democratic senator is recommending a boycott of the burger joint. Instead, Sen. Sherrod Brown, D-Ohio, said hamburger lovers should try out two fast food chains that haven't "abandoned" the United States -- White Castle and Wendy's.

"Burger King has always said 'Have it Your Way'; well my way is to support two Ohio companies that haven't abandoned their country or customers," Brown said in a statement.

Burger King is considering purchasing the Canadian-based business Tim Hortons in a move known as an "inversion" -- when a company shifts profits overseas to avoid paying domestic tax rates. Members of Congress and the administration this year have mulled over ways to crack down on the growing number of inversions. Walgreens recently opted against an inversion in part out of concern that customers would stop shopping at its stores in protest to the move, the Wall Street Journal reported earlier this month.

• Burger King eyes deal for Tim Hortons

In his statement, Brown noted that "runaway corporations" like Burger King have benefitted from U.S. policies that help companies grow but don't want to pay their share of the tab. Brown, a member of the Senate Finance Committee, rolled out a plan in June to lower the U.S. corporate tax rate so that it is more globally competitive, and to create a global minimum tax rate. Brown's plan is just one of multiple proposals the Finance Committee has considered this year to address the problem.

President Obama has decried the uptick in corporate inversions, remarking in a July speech in Los Angeles that the companies in question are sometimes referred to as "corporate deserters."

"These companies are cherry-picking the rules," he said. "And it damages the country's finances. It adds to the deficit. It makes it harder to invest in things like job training that help keep America growing. It sticks you with the tab to make up for what they're stashing offshore through their evasive tax policies."

Mr. Obama noted that he's put forward plans to cut corporate tax rates and make the system more competitive. However, he said, "Congress hasn't done anything -- as usual."

The White House has said it's not unreasonable to expect action from Congress this year, even ahead of the midterm elections. Ten years ago, the White House has noted, a Republican-led Congress cracked down on corporations moving to offshore tax havens like the Cayman Islands. The bill was signed by a Democratic president months before the midterm elections that year.

While the administration waits for Congress to act, the Treasury Department is considering actions it can take on its own.

"There may be an opportunity for the Treasury Department to change some rules in a way that removes or at least reduces the financial incentive for some American companies to consider those kinds of transactions," White House spokesman Josh Earnest said Monday.

Senator Boycott Burger King as it eyes move to Canada - CBS News

Please point out those Republicans involved, this article seems o mention a Democratic Senator and continues to talk about the current administration and their childish tactics of name calling ..................

 

[Vandalshandle]

If that's the case, then why is Obama whining about the loss in revenue to the federal government?

I have not heard or read of any such "whining"

 

[DrDoomNGloom]

If that's the case, then why is Obama whining about the loss in revenue to the federal government?

I have not heard or read of any such "whining"

Read above post closely ..............

 

[Vandalshandle]

If the House passed a bill to lower corporate taxes do you think Harry would let the bill come up for a vote in the Senate?

Well, that certainly has not stopped the House from passing at least 30 bills repealing ACA all the while knowing that it was never going to happen.....

 

[Pogo]

Still have yet to see any evidence whatsoever that taxes have anything to do with all of this, nor have I seen any evidence such a move would save them on taxes anyway. However I can readily see the obvious advantage of buying a brand of over 4500 wildly popular stores that's well known coast to coast in a country bigger than ours. Everybody in Canada knows Tim Horton's and most have one nearby. It's a huge cash cow. As an enterprise it's only slightly smaller than BK.

You surely don't need to make a move like that if your intention is simply to move to Canada; you just buy Gordon's Burgers in Hamilton and you're in. Nor is Canada the cheapest place you could move to for that objective anyway.

Heard Sean Inannity yammering about this yesterday; he mentions the merger and he mentions the idea of taxes; but he never declares one is a cause of the other. He just drops them side by side and lets the sheeple take the ball and run to the wrong end zone.

I wouldn't compare TH to Wawa -- the latter is a convenience store that serves ready-to-eat food. Donuts yes, but prepared real food too, a notch or two of quality above BK. Somewhere between there and Panera. Or if you like a poor man's Au Bon Pain. I'd hope any dilution of the two standards lands more in their direction than that of Burper King.

 

[Pogo]

Did Obama just chases the King across the border.?

No, he didn't. As your own article states, Burger King is purchasing a large chain based in Canada, and is considering moving their headquarters to Canada as a result of that.

Stop being such a bigot and read your damn articles.

The bottom line is that Burger King is moving it's headquarters from Miami to Canada for tax purposes.

Bullshit.

 

[Desperado]

Did Obama just chases the King across the border.?

No, he didn't. As your own article states, Burger King is purchasing a large chain based in Canada, and is considering moving their headquarters to Canada as a result of that.

Stop being such a bigot and read your damn articles.

The bottom line is that Burger King is moving it's headquarters from Miami to Canada for tax purposes.

Bullshit.

REALLY? Doubling down on that are you?
Well feast your eyes on this:
Warren Buffett will pay $3B for Burger King to buy Tim Hortons — and avoid U.S. taxes
Warren Buffett will pay 3B for Burger King to buy Tim Hortons and avoid U.S. taxes - NY Daily News
Im sure you remember Warren Buffett, who said it is patriotic for the rich to pay higher taxes. His Actions now prove the man is nothing more than a liar and an Obama stooge.

 

[Luddly Neddite]

And yet people don't understand why we have to borrow money from China.

 

[Pogo]

Did Obama just chases the King across the border.?

No, he didn't. As your own article states, Burger King is purchasing a large chain based in Canada, and is considering moving their headquarters to Canada as a result of that.

Stop being such a bigot and read your damn articles.

The bottom line is that Burger King is moving it's headquarters from Miami to Canada for tax purposes.

Bullshit.

REALLY? Doubling down on that are you?
Well feast your eyes on this:
Warren Buffett will pay $3B for Burger King to buy Tim Hortons — and avoid U.S. taxes
Warren Buffett will pay 3B for Burger King to buy Tim Hortons and avoid U.S. taxes - NY Daily News
Im sure you remember Warren Buffett, who said it is patriotic for the rich to pay higher taxes. His Actions now prove the man is nothing more than a liar and an Obama stooge.

Maybe you should read your own links ---- as somebody told you back at the beginning. Because nowhere does Buffett say that; nowhere does Burger King say that; and nowhere does Tim Horton's say that. None of them make any allusion at all; that's plugged in by the writer of a sensationalist newspaper. Which is btw owned by Rupert Murdoch (clue #2).

In fact they explicitly deny it, right in your own article:

Burger King Executive Chairman Alex Behring insisted the acquisition, which would create the world’s third-largest fast food company, was “not a tax-driven deal.”

“It is fundamentally about growth and creating value through accelerated expansion,” he said.

Burger King CEO Daniel Schwartz said “we don’t expect our tax rate to change materially.”​

Your own link dood. Once again, like Hannity, this suggesting is plugged in by outside plug-inners. You gotta learn to read the news with a critical eye when you're being played.

How 'bout the official announcement from the companies -- this one linked from your OP article:

3G Capital, the majority owner of Burger King, will continue to own the majority of the shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King. 3G Capital and its affiliates have a demonstrated track record of managing international expansion of iconic brands around the globe.

Within this new entity, Tim Hortons and Burger King would operate as standalone brands, while benefiting from shared corporate services, best practices and global scale and reach. A key driver of these discussions is the potential to leverage Burger King's worldwide footprint and experience in global development to accelerate Tim Hortons growth in international markets.

The new company would be the world's third-largest quick service restaurant company, with approximately $22 billion in system sales and over 18,000 restaurants in 100 countries worldwide. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their respective consumers. Any transaction will be structured to preserve these relationships and deepen the connections each brand has with its guests, franchisees, employees and communities.​

Not a word about taxes in there -- but plenty of other reasons that have zero to do with taxes. Go ahead, find me a reference.

It's 3G Capital, not Warren Buffett, that is pursuing the move; Buffet is an investor therein. 3G Capital is a Brazilian firm that acquired Burger King four years ago. As part of its restructuring plan it required the existing BK to divest its holding in.... all together now... Canada.

Oh and that last link provides another reasoning here:

The new publicly-listed company would be headquartered in Canada , the largest market of the combined company.​

 

[Desperado]

Not a word about taxes in there -- but plenty of other reasons that have zero to do with taxes. Go ahead, find a reference.

You think BK wants bad press by saying we are moving our Headquarters to Canada to avoid paying higher taxes?
Of course they will come up with other reasons.
However taxes do play into the move, or are you denying that too?

On the surface, the reason for a headquarter shift across the country's northern border is simple: lower corporate taxes.

As we have have noted before, when a company reincorporates abroad, as the practice is known, what it's really doing is shifting its corporate citizenship; and when a company shifts its corporate citizenship, what it's really doing is trying to pay less in taxes. The nominal corporate tax rate in the U.S., which combines national, state, and city-level tax rates, is nearly 40 percent—the highest across all 34 Organization for Economic Cooperation and Development (OECD) member countries. Canada's, by comparison, is just over 26 percent.

Have taxes your way Why Burger King wants to become a Canadian citizen - The Washington Post

 

[Pogo]

Once again, yet another opinion blog that makes a speculation -- not a causal relationship. You really don't get the concept of opinion versus fact, do ya?

The blogger's ignorance of the deal is exhibited by his characterization of TH as the "equivalent of Dunkin' Donuts". Obiously he's never been in one.

You think BK wants bad press by saying we are moving our Headquarters to Canada to avoid paying higher taxes?
Of course they will come up with other reasons.
However taxes do play into the move, or are you denying that too?

Have taxes your way Why Burger King wants to become a Canadian citizen - The Washington Post

.

I'm saying you have no evidence whatsoever to make that claim -- as you did flat out in the title of your OP -- which is why it's bullshit. You don't spend eight billion dollars or whatever the price tag ends up to be -- just to chip your corporate tax down one percent. If it's a move for tax purposes you can rent office space in Richmond Hill for waaaaaaaaaaaaaaaay less than that.

 

[Mr Natural]

You people do realize that the tax dollars lost through these corporations leaving the US will have to be made up somehow.

Either through more borrowing or on the backs of working people.

 

[bripat9643]

You people do realize that the tax dollars lost through these corporations leaving the US will have to be made up somehow.

Either through more borrowing or on the backs of working people.

All taxes are on the backs of working people. Who do you think pays taxes, the tooth fairy?

 

[paulitician]

Canada got smart and ditched their Communist morons. And they're doing very well as a result. We should follow their lead. We need to encourage businesses to stay home.