Gordon Forgey

Inversion is the practice of companies moving their headquarters out of the United States to save on taxes. At present, the corporate tax in America is the highest in the world for industrial states.

Since the announcement that Burger King was merging with a Canadian donut chain, tax inversion has become a hot topic. That is because Burger King has plans to locate the new combined corporate headquarters to Canada to save on corporate taxes, renouncing its corporate citizenship.

Some critics have called for a boycott of Burger King, one asking American taxpayers to go to Wendy’s or White Castle instead.

As President Barack Obama’s recently said, the loss of American companies to foreign shores hurts the country as well as individual taxpayers.

Many corporations have already skipped the country, but the fear is that if a company as public as Burger King makes the move it would encourage many other corporations to do the same.

Some analysts think heavy fines and taxes for the use of American infrastructure by foreign companies would stall the practice.

The answer, of course, is to make the country’s tax rate more competitive with the corporate rates around the world.

Our tax structure has been criticized for years. The problem has received a lot of talk, but nothing has come from it.

With mid-term elections coming up and the presidential election on the horizon, it is time to get candidates to declare their position on how to stop the drain of American corporations.

America has lost much of its manufacturing to other parts of the world. Technology and service organizations are leaving as well.

When we cannot even keep American hamburgers American, something must be done.

Gordon Forgey

Publisher