Wednesday, August 27, 2014

Burger King Fans Call For Boycott After Tax Dodge

People flooded the fast-food chain’s Facebook page on Monday with threats of a boycott after the company announced talks to merge with Canadian coffee and doughnut chain Tim Hortons. The combined company would be headquartered in Canada.

Burger King is just the latest American company to attempt a so-called tax inversion — where a bigger U.S. company buys a smaller foreign firm in a country with a lower tax rate, renounces its U.S. corporate citizenship and then reincorporates in the other nation. Politicians and pundits have said the moves amount to little more than unpatriotic ploys to avoid paying taxes. The corporate tax rate in the U.S. is 35 percent, the highest in the world. Canada’s is about 15 percent.

“Move to Canada to avoid paying taxes and I will never darken the door of a Burger King again,” Mike Gee, of Magnolia, Arkansas, wrote in a comment. “Does corporate greed in this country ever end?”

Radina Russell, a Burger King spokeswoman, declined to comment.


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