Monday, January 25, 2016

Corporate #Inversions A Reality of Inefficient Capital Flows

News
Major public corporations continue to 'invert' or move their tax domiciles offshore to avoid taxes legally. Politicians and public at large scream bloody murder only because labor is not flexible. If it was, they'd do the same thing.

Capital would efficiently invest in countries with a strongest, most educated labor force if taxes were eliminated. Tax inversions would be quickly replaced by capital flows/investment necessary to create millions of higher-paying and -skilled jobs. The only ones bitching would be those dependent on taxation without the expectation of producing something society wants.

Headline: Johnson Controls, Tyco merge in tax-avoiding inversion deal

Manufacturing giants Johnson Controls and Tyco International plan to merge in another example of a controversial tax inversion, creating an industrial conglomerate with $32 billion in annual revenue.

The deal marks the latest occurrence of a corporate inversion, in which a U.S.-based company acquires a foreign firm and switches its headquarters to the foreign firm's home to lower its tax bill.


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