The dirty little secret about the influx of corporate inversions is the punitive tax policies of the U.S. government. These greedy Washington D.C. bastards are double dipping. Here is an excerpt from Forbes.com:
An inversion starts when a U.S. company purchases a business overseas, thereafter relocating its headquarters to the target’s foreign address. An inversion does not reduce U.S. taxes on U.S. income, but allows the company to avoid paying U.S. taxes on foreign earnings. Many U.S. companies that expect much of their sales growth outside the U.S. have a special reason to go offshore.
I wonder if foreigners are surprised they’re responsible for building the roads, bridges and general infrastructure we Americans take for granted. Maybe we should rename highways and public buildings after foreign countries, because as liberals love to say, ‘you didn’t build that.
American companies are just following the example of American expatriates who’ve renounced their citizenship. Here is what one had to say about U.S. tax code:
The tax obligations imposed by the U.S. drove us crazy! We live in a small town, and it was difficult to find an expert who knew the ins and outs of the U.S. tax system. When we did find a firm, it cost us more than 4,000 New Zealand dollars ($3,360) for them to do our U.S. taxes each year. We looked at the money we paid the accountants as the price we paid to retain our U.S. citizenship. But as we got older and U.S. tax laws became more convoluted, it just didn't seem worth it anymore.
The accountancy fee is the main reason why we both renounced our U.S. citizenship last year. It wasn't an easy decision -- super stressful, and very emotional. But at the end of the day, I think it was the right thing for us.
Democrats accuse corporations that move their headquarters oversees as unpatriotic. These companies are still paying taxes on U.S. income. What’s unpatriotic are politicians shaking down these companies for personal gain.