The Ultimate Tax Shelter – Move to another Country
By Dick McDonald
Many things escape the telling when you read the New York Times. As the leading proponent of progressive liberalism they infer that Apple as well as Google, HP and other high tech firms are not paying the “fair share” of local, state or Federal income taxes. They are “sidestepping” them. Of course there is nothing illegal about that but that is not admitted until late in the article long after they have made their assertion as to the immorality of it all.
When it comes to the taxation of corporations, I believe governments have a death wish. They tax corporations to the breaking point then wonder why the corporation moves out of their taxing authority. The progressive media ignores the cause and just whines about the result doing no one a favor by unearthing the truth. And the underlying truth is that corporations are just another taxing authority just like the IRS. If corporate taxes are raised the prices of the corporation’s products and services are raised to recover that cost from its customers – the American taxpayers.
Of course the readers and users of the NYT propaganda don’t care a whit about the truth they merely pursue their collectivist anti-capitalist agenda until they can impose their utopian socialism on the productive.
Fortunately for taxpayers including corporations there is always an out. The tax consultants can suggest the corporation move its home office to a tax-friendly country. I remember my employer, the world’s largest accounting and consultancy practice at the time, moved its headquarters in the 60’s from Chicago to Switzerland for that reason.
Corporations are leaving California by the thousands for other states. Let’s hope our national legislatures ignore the Times column because seriously tightening the tax laws will eventually leave corporations no choice but to move out of the country. You think out-sourcing labor is bad wait until your Congress out-sources our corporations.