Here’s what’s happening folks...
There is a big tax advantage if Walgreen becomes a Swiss company. The U.S. imposes worldwide taxation, which means American-based companies not only pay tax on income earned at home but also are subject to tax on income earned overseas. Most other nations, including Switzerland, use territorial taxation, which is the common-sense approach of only taxing income earned inside national borders.
The bottom line is that Walgreen, if it becomes a Swiss company, no longer would have to pay tax to the IRS on income that is earned in other nations.
And here’s the problem ( Note to those who keep harping about bringing jobs back to America ).... Many people still think that taxpayers in the US economys productive sector should be treated as milk cows that exist solely to feed the Washington spending machine.
AS long as we have this mentality, expect more Walgreens to happen ( Heck, Apple and Google have already started the ball rolling ).
Thanks for your excellent and short explanation of what could happen to Walgreen and other US corporations, who have markets overseas.
So instead of sending jobs over seas, we will be sending our tax $’s and CEO’s and top execs over seas.
“There is a big tax advantage if Walgreen becomes a Swiss company. The U.S. imposes worldwide taxation, which means American-based companies not only pay tax on income earned at home but also are subject to tax on income earned overseas. Most other nations, including Switzerland, use territorial taxation, which is the common-sense approach of only taxing income earned inside national borders.
The bottom line is that Walgreen, if it becomes a Swiss company, no longer would have to pay tax to the IRS on income that is earned in other nations.
And heres the problem ( Note to those who keep harping about bringing jobs back to America ).... Many people still think that taxpayers in the US economys productive sector should be treated as milk cows that exist solely to feed the Washington spending machine.
AS long as we have this mentality, expect more Walgreens to happen ( Heck, Apple and Google have already started the ball rolling ).”
Yay Switzerland! They get it!
Boo, home team!
I fail to see how it matters one way or another if the sniveling little b!tches (Walgreens) moves to Switzerland. Either way they will be taxed on what they earn in the USA.
If they stay here we all know the scam. They will want to bring in overseas earnings tax free to distribute to investors-stockholders. No....they will not be investing that money here as they like to lie about. Anyways they can use US earnings for that
Even if the tax they pay in Germany is 5% and the US tax authorities want Walgreens to pay the difference between the German tax rate and the American tax rate which lets say is 20%.
These transnational corporations have no loyalty to America. F’em and better yet tax them!