Why companies are moving headquarters out of the U.S.

Burger King

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.

3 comments

  • XEROX

    Sometimes consumers do not have an option on where to buy something.

    This is not one of those situations. Boycott them, plain and simple.

    Companies move over seas to save millions and don’t pass a dime of the savings on to employees or consumers.

    • Rick

      DUH! Because employees and consumers are NOT investors in the company. If you want to cash in on some of those “move savings”, buy some stock!

      But first I suggest you take a class on economics.

  • XEROX

    I don’t need to take a class on anything, much less something you suggest. You missed the entire point.

    News flash, the employees and consumers are what makes a company. If no one purchases the product, the company goes bust.

    The least companies could do is show just a little appreciation once in awhile. Much like society they are never satisfied.

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