PDA

View Full Version : Inversions - US companies move off-shore


DJofSD
01-27-2014, 12:25 PM
The law is a classic example of how Congress’s attempts to tweak corporate behavior through the tax code usually backfire, said Kevin Murphy, a professor at USC’s Marshall School of Business who studies executive compensation. “One thing we can always count on is that there will be lots of unintended consequences -- usually costly -- for shareholders and for taxpayers.”

http://www.bloomberg.com/news/2014-01-27/companies-fleeing-taxes-pay-ceos-extra-as-law-backfires.html

If there's not an ETF/ETN for this yet, there'll be one soon.

pandy
01-27-2014, 05:36 PM
http://www.bloomberg.com/news/2014-01-27/companies-fleeing-taxes-pay-ceos-extra-as-law-backfires.html

If there's not an ETF/ETN for this yet, there'll be one soon.

This is one of many plans that have backfired. Bottom line is, when you increase taxes people or companies take their money elsewhere. Politicians never seem to get this. Ireland, which sharply reduced their corporate tax rate many years ago, has picked up a lot of extra tax revenue from companies either moving their business to Ireland or incorporating in Ireland.