One by one, great American companies are looking for a way to escape the brutal taxes imposed on them by an increasingly liberal government. Burger King is the latest company looking to reincorporate outside the U.S. borders, hoping their takeover of Canadian chain Tim Hortons will put them in prime position to relocate to the Great White North.
The potential buyout has many on the left wringing their hands about “unpatriotic” companies that try to shift corporate citizenship in an attempt to escape their tax burden. Of course, there’s no question that these relocations put less money back into the government. There’s no question that it’s bad for America. There is a question, however, when it comes to what we should do to stop it. The liberals, naturally, want to solve the problem by closing loopholes and imposing penalties. Sensible commentators, though, think the key lies in addressing the root of the problem.
Right now, the effective corporate tax rate in the U.S. is at a staggering 40%. That puts America at the very top of the 34 countries in the Organization for Economic Cooperation and Development. Canada, by contrast, has an effective corporate tax rate of only 26%. Something is drastically wrong with the state of American economics when companies are fleeing to Canada because it’s better for business.
But who can blame Burger King for the move? Do companies owe it to the U.S. government to stay and pay exorbitant taxes just for the privilege of being headquartered here? Isn’t it true that these companies owe a greater debt to their consumers, workers, and shareholders than they do to the IRS? Don’t they pump a great deal of money into the economy simply by existing and doing well in a capitalist state? These are all questions that have obvious answers that only socialists-in-disguise can’t seem to figure out.
Barack Obama has a debt as well. He owes it to the American people to stop branding these fleeing companies as unpatriotic while he simultaneously devises amnesty for illegal aliens. Sorry, Barack, but you’ve long since waived any right you ever had to call anyone or anything unpatriotic. Besides that, name-calling isn’t going to get the job done.
This is going to take a concerted effort on the part of the federal government to take a close look at current tax laws and find ways to lure companies back to the United States. This used to be the world’s shining beacon of capitalism. Companies would have once done anything in their power to open up shop within our borders. Now it seems that we only attract underage Central American refugees and terrorists. Not all of the blame for this can be laid at the feet of the president, but it is his job to do something about it now. Sadly, his idea of “doing something” about it will probably only make the problem worse.