Monday, August 25, 2014

Hold the Pickles, Hold the Lettuce, Hold the Taxes

Burger King is working on a whopper of a deal, the acquisition of the Canada-based Tim Hortons restaurant chain.  The acquisition would create the world's third-largest fast-food and fast-casual restaurant company, with more than 18,000 outlets in 100 countries and about $22 billion in system sales, the companies said in a statement.

The deal would be considered an inversion, that is, Burger King would become a Canadian company as far as U.S. taxes law is concerned. Specifically, inversions allow companies to transfer money earned outside the U.S. to the parent company without paying additional U.S. taxes, in this case the parent company will have a Canadian address.

I say Burger King should go for it. As Ludwig von Mises noted, capitalism breathes through loopholes.

Note the names of anyone who decries Burger King's use of this loophole, they are apologists for the state.


1 comment:

  1. When McDonald's, Wal-Mart and Exxon do the same "reverse merger" and remove ALL corporate HQs from inside the USA then maybe, just MAYBE, the government will wake up.

    But I doubt it.

    Good on BK, and THortons.