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Walgreen Co. Message Board

  • abc_for_president abc_for_president Aug 5, 2014 2:21 PM Flag

    Can't Blame Walgreens for Doing an "Inversion"

    U.S. Corporate tax rates max out at 35% for big companies like Walgreens.

    Not only is that the Highest Corporate Tax Rate in the World, the the U.S. is one of the few countries that taxes the difference between foreign taxes and the 35% rate when companies bring the earnings home.

    Obama said before the 2012 election that he favored reducing the high, 35% rate but, of course, AFTER he was elected, he stopped supporting a reduction. Obama is a hater of Capitalism, and he has never held corporations like Walgreens in anything other than bitter contempt.

    It wouldn't take that much of a reduction in corporate taxes to incentivize U.S. based companies to STAY U.S. based companies, but Obama is taking the approach of punishing them for leaving, rather than giving them tax incentives to stay here. Obama's constituents love him BECAUSE he is an anti-capitalist and prefers to punish corporations.

    So I'm All for Companies like Walgreens doing "inversions"...

    ... until some semblance of SANITY returns to U.S. Government.

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    • stop your lies..... the effective avg tax rate that corporation pay in the USA is 12.6%..... kinda like how Mittens pays 13%.... and the top 400 returns in the USA paid 16.6% effective income tax rate..... and btw... USA corporations made money in the 1950s when corporate taxes made up 1/3 of all tax revenue... now it's just 10%......and hey... do tell how you like Switzerland for its universal healthcare, paid maternity leave and no oil wars....

    • inversions may help companies in long run as tax laws are now, but I dont know that they are shareholder friendly short term if you are holding with a large capital gain. Had the same think happen with ETN awhile back,,,,"new" shares issued replacing old and got whacked with capital gain tax at that time,,ie cost basis to price on the day of stock swap. Would expect the same here,,,anyone know differently?,,,,and no, not a basher have a position of WAG in family since 90's.