Buffett’s investment in Burger King will allow the burger chain to move part of its headquarters to Ontario and avoid paying millions in U.S. corporate taxes. The move comes a month after President Obama denounced ‘inversion’ tactics like this as an ‘unpatriotic tax loophole.’◼ Following Burger King’s example, more companies will aim to move their headquarters to other countries if the United States doesn’t lower — or eliminate — the corporate tax rate, a prominent economist says. - Josh Siegel/The Daily Signal
Under the deal, Burger King insisted later today it does not plan to relocate to Canada, where corporate taxes are significantly lower.
“This is not a tax-driven deal. It is fundamentally about growth and creating value through accelerated expansion,” Executive Chairman Alex Behring said on a media call....
The nation’s effective corporate tax rate, combining national, state and local rates, is nearly 40 percent—the highest across all 34 countries that belong to the Organization for Economic Cooperation and Development.
Canada’s rate is just above 26 percent.
◼ Insider Info On Burger King Move - Herman Cain
◼ Buffett Burger King Funds Flip Obama’s Inversion Calculus - Bloomberg
Billionaire Warren Buffett was an ally of President Barack Obama during the 2008 presidential campaign and the force behind Obama’s “Buffett Rule,” designed to increase tax bills for the wealthiest Americans.◼ ‘Might as well join the ISIS': Lefty comments to Burger King are hilarious - Twitchy
Now, the second-richest man in the U.S. has dented Obama’s effort to stamp out corporate inversions.
Buffett’s financing of Burger King Worldwide Inc. (BKW)’s $11.4 billion purchase of the Canadian fast-food chain Tim Hortons Inc. (THI) challenges Obama’s argument that inversions are unpatriotic and gives defenders of the practice leverage to make their case.
“Warren Buffett has nothing to be defensive about -- this looks like a smart investment that should benefit his shareholders,” said Tony Fratto, a Treasury Department and White House official in President George W. Bush’s administration. “As for the White House and Treasury, I hope they learn something here.”
