Walgreens renouncing U.S. corporate citizenship

[dmcowen674]

7-1-2014

http://finance.yahoo.com/news/renouncing-corporate-citizenship-001240207.html

Walgreens renouncing U.S. corporate citizenship

larmingly, dozens of large United States companies are contemplating the increasingly popular tax-skirting tactic known as an inversion. Under the strategy, companies merge with foreign rivals in countries with lower tax rates and then reincorporate there while still enjoying the benefits of doing a large part of their business in the United States

In Walgreen’s case, an inversion would be an affront to United States taxpayers. The company, which also owns the Duane Reade chain in New York, reaps almost a quarter of its $72 billion in revenue directly from the government; it received $16.7 billion from Medicare and Medicaid last year.

Frank Clemente, executive director of Americans for Tax Fairness, called it “unfair and deeply unpatriotic if the company moves offshore while continuing to make its money here, leaving the rest of us to pick up the tab for its tax avoidance.”

A little less than two years ago, Gregory D. Wasson, the chief executive of Walgreen, sought a series of tax breaks from Illinois, where his company is based.

The state gave Walgreen $46 million in corporate income tax credits over 10 years in exchange for a pledge to create 500 jobs and invest in upgrading its offices. The state also provided $625,000 in training money and $875,000 in other tax incentives.

 

[dmcowen674]

At this rate there won't be anyone left to pay taxes.

Then what will Republicans do?

 

[theeedude]

According to Republicans, this is all America's fault.

 

[glenn1]

At this rate there won't be anyone left to pay taxes.

Then what will Republicans do?

Continue to pay their own way. The bigger question is what will Democrats do?

 

[dphantom]

The better question is what will Democrats do. 🙂

 

[dphantom]

The bigger question is what will Democrats do?

Beat me to it.

 

[bradley]

To make this a political issue means you support business as usual and the status quo. Glad this tactic was brought to my attention.

Not that my dollars matter, but once Walgreens flips the switch, I boycott them indefinitely.

 

[glenn1]

To make this a political issue means you support business as usual and the status quo. Glad this tactic was brought to my attention.

Not that my dollars matter, but once Walgreens flips the switch, I boycott them indefinitely.

Instead of boycotting you should advocate for rationalization of the business tax code. Because like it or not the U.S. is in competition with other nations on all fronts including taxation, and if people continue to have an attitude like the OP of "I hope all the rich people leave the country" then don't be surprised if that's what happens.

 

[Thebobo]

To make this a political issue means you support business as usual and the status quo. Glad this tactic was brought to my attention.

Not that my dollars matter, but once Walgreens flips the switch, I boycott them indefinitely.

I agree you should see all the celebrate the 4th on their website. I commented....


Someone make a face book page~ Or give me a name idea...

poor Rudolph if he only knew..

 

[Newell Steamer]

It's OK, because a corporation is doing it,.. unless whatever they are doing goes against the Bible,.. unless what goes against the Bible involves homosexuals, women and whatever else the herp-a-derps are pissed off about.

Man! You pro-business ass lickers sure have a lot of exceptions to your rules!

 

[glenn1]

It's OK, because a corporation is doing it,.. unless whatever they are doing goes against the Bible,.. unless what goes against the Bible involves homosexuals, women and whatever else the herp-a-derps are pissed off about.

Man! You pro-business ass lickers sure have a lot of exceptions to your rules!

Shouldn't you be busily working away at finding something else to subsidize for women in order to pander for their votes?

 

[SurelyYouJest]

Businesses should pay tax on their gross income made in the U.S. to the U.S. just like we have to pay income tax on our gross earnings. That would stop all this tax dodging BS.
That being said the tax rate should not be 35%, it should be between 5-10%.

 

[K1052]

Walgreens management didn't want to do the inversion but got pressured into it by missing quarterly earnings and because of strong leverage applied by several large shareholding funds acting in concert. It's always a good idea to let fund managers run your company...I mean they're really on the lookout for it's long term health.

 

[OutHouse]

It's OK, because a corporation is doing it,.. unless whatever they are doing goes against the Bible,.. unless what goes against the Bible involves homosexuals, women and whatever else the herp-a-derps are pissed off about.

Man! You pro-business ass lickers sure have a lot of exceptions to your rules!

humm pro business ass lickers? do you say to yourself when you cash your paycheck?

 

[alcoholbob]

At this rate there won't be anyone left to pay taxes.

Then what will Republicans do?

Join the democrats in the breadlines in a socialist paradise?

 

[OutHouse]

The state gave Walgreen $46 million in corporate income tax credits over 10 years i

so can i get a tax credit for living in my state and buying shit from walgreens?

 

[Thebobo]

Join the democrats in the breadlines in a socialist paradise?

Oh and btw a socialist paradise by definition would not have bread lines, just saying 😉

 

[z1ggy]

Didn't the OP have like.. 51,000 posts just a few weeks ago? Holy crap tits.

 

[Oldgamer]

At this rate there won't be anyone left to pay taxes.

Then what will Republicans do?

They will implement more tax cuts on the disadvantaged in this country and make a harder push for privatization. That's what they will do. Most of these congress men and women have invested in these very companies who are doing all the Tax Skirting and Aversion. No surprise..

I imagine that some congress members like Elizabeth Warren and Bernie Sanders and some others will try to push a bill through to change the laws regarding this behavior.

It's never ending isn't it? These large rich companies forever looking to avoid paying US taxes while all the while taking advantage of the US benefits.

 

[boomerang]

Just think of this as one part of the fundamental transformation. One world, everyone equal, in every way. The concept when fully implemented will mean the location of the HQ of any business will be inconsequential. Kudos to Walgreens for being out in front on this.

The left should be rejoicing over Walgreens being so very progressive.

 

[DrDoug]

Continue to pay their own way. The bigger question is what will Democrats do?

We're all in one big boat in this country. The problem for us all is that conservatives are busy drilling as many holes in the bottom of it as they can in an attempt to sink it while claiming to be saving it. Then, while the country sinks and people start drowning, conservatives get to hop in their life boats and save themselves. The best part for them is that they get to sit back and watch the people they despise cry for help and then drown.

This sounds like the perfect idea for a movie! Maybe make it something symbolic, like an unsinkable ship full of the haves and have nots that the captains of industry are piloting recklessly in an area known for large icebergs.

This country has too many selfish fucks who don't give a shit about anyone but themselves. They believe that a nation full of selfish fucks would be paradise.

 

[Matt1970]

Businesses should pay tax on their gross income made in the U.S. to the U.S. just like we have to pay income tax on our gross earnings. That would stop all this tax dodging BS.
That being said the tax rate should not be 35%, it should be between 5-10%.

I think you mean income after expenses. A lot of business operate on a less than 5% profit margin. Hitting them with before expenses tax would just get passes on to the consumer.

 

[Matt1970]

Oh and btw a socialist paradise by definition would not have bread lines, just saying 😉

Well sure they don't by definition. Everyone puts in a hard days work and things get shared equally for the betterment of the community. Reality paints a different picture.

 

[SurelyYouJest]

I think you mean income after expenses. A lot of business operate on a less than 5% profit margin. Hitting them with before expenses tax would just get passes on to the consumer.

Are you stupid?!
It all gets passed on to the consumer. That's how business works. But at least making them pay on their gross here the money would stay in the U.S. instead of going to Ireland, the Cayman Islands, or some other hole that only exists to assist tax evasion.

 

[Cozarkian]

Instead of boycotting you should advocate for rationalization of the business tax code. Because like it or not the U.S. is in competition with other nations on all fronts including taxation, and if people continue to have an attitude like the OP of "I hope all the rich people leave the country" then don't be surprised if that's what happens.

I'm in favor of a very simple rule on this issue. All companies conducting business in the U.S. need a federal tax identification number. Any revenue from goods sold in the U.S. are services provided to someone in the U.S. are taxed as income. Expenses are deductible only if they were incurred within the U.S.

I'm actually surprised to find that it doesn't work like that and that Walgreen can avoid taxes by incorporating elsewhere. If they sell goods at stores in the U.S. they should pay taxes on those revenues in the U.S. not in some other country. Similarly, if they make money in other countries, we shouldn't tax that money if it is brought to the U.S.