Posts Tagged ‘Tax inversions’

The latest result of Obamanomics goes by the fancy name of “tax inversions.” What that simply means is a company domiciled in the U.S., say Burger King, gets fed up paying the highest corporate income tax in the world (see chart above) so they buy a Canadian company, let’s say it’s Tim Hortons, and move their domicile to Canada with their 15 percent corporate income tax rate.

You do the math: 15% Canadian tax vs. 35% U.S. tax.