Why companies are moving headquarters out of the U.S.
NEW YORK, N.Y. — Burger King’s headquarters are based in Florida, but the company is owned by a Brazilian investment firm.
Now that Burger King plans to buy Tim Horton’s, Canada’s version of Dunkin Donuts, it plans to move its headquarters to Canada.
BK is the latest company to announce it is moving out of the United States.
Companies that leave the U.S. still pay taxes on all money made here, but not on the money made in other countries.
The Wall Street Journal reports the U.S. is among the few countries which tax both domestic and foreign income.
That means companies can save more than $100 million dollars a year or more.
Assuming the purchase goes through, Burger King projects two-thirds of its income will come from Canada, one-fifth from the United States and the rest from other countries.
“We don’t expect there to be meaningful tax savings,” said Daniel Schwartz, CEO of Burger King Worldwide. “This transaction is not about tax rates, but about growth.”
There are calls to reform the U.S. tax incentive and remove the tax on foreign income but so far no changes have been made.
Detractors say companies that started in the Unites States should stay and support those who support them.
Warren Buffett, who has repeatedly said U.S. companies don’t pay enough taxes, is helping fund the purchase and subsequent move.