Corporate tax dodging is the new buzzword among America’s economic corridors. As Washington tries harder to bring to book those who like making more money by paying lesser taxes, the elite that rule the country’s biggest companies and their tax lawyers are constantly thinking up new ways of evading the noose.
‘Tax Inversion’ is the latest method by which these companies are trying to evade paying greedy Uncle Sam, and among the many names considering this option is Walgreens. Walgreens is the biggest drugstore chain in America with more than 8,700 stores across the nation. Though Walgreens Co. Chief Executive Greg Wasson has not yet publicly announced the company’s move, it is well known that Walgreen and many other of its ilk are mulling over this financial gamble and will make an announcement soon.
While America has been cracking down on individuals who are just trying to survive, the corporate sector in the country is also trying to survive. The last tax reform in the US was almost 30 years ago, and tax lawyers say that right now the tax code is in shambles. The corporate tax rates in America are among the highest in the world and with foreign tax havens like Puerto Rico and Ireland calling out to corporates leaders, an economic migration is simply inevitable. In fact, it is logical and moral.
Unless America decides to pull up its socks and do something about it. Tax lawyers agree that the best way to curb the tax inversion rates is by reforming policies and bringing down corporate tax rates to more reasonable and internationally competitive levels. Both parties in the government agree to this ultimatum, but sadly nothing has been done as yet.
The companies that move abroad to lower their taxes will continue to enjoy the same treatment in the US that they did before, and many of them will still retain their lobbying power in government. Why not? Most of their business is still in America and most Americans know that if America ever does lower their tax rates these companies will just return.
Walgreens should have left years ago
Some Walgreen customers have been complaining about the company’s proposed change of address – most do not know about nor care. Many socialist activists who do not believe in a vibrant private sector and who rely on government handouts to survive have rallied and held protests outside the company’s headquarters in Chicago. This is the same city that allows criminals to walk around with guns but does not allow law abiding citizens to defend themselves. This is the same city that continues to raise its taxes and then wonders why there are not enough jobs to go around.
Walgreens, you should have moved out years ago according to tax professionals. Many people who understand business have wondered why Walgreens has sat around in Chicago for so long. They could easily move to Dallas, Oklahoma, Orlando, for example, where the taxes are much less. Walgreens fell asleep on this one.