US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicile

[mrplunkey]

Latest example: Medtronic, Covidien in Advanced Talks to Combine - WSJ

It's cheaper to just buy a foreign company and re-domicile (called an "inversion") then use the cash you save on US taxes to fund the acquisition.

USA! USA! USA!

Barry is doing irreversible damage to this country. Billions of dollars in US-based companies are being lost -- and those dollars will never come back.

 

[PICK3]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

Before Barry =====> PICK3 poor ass ngr bish

After Barry ======> PICK3 poor ass ngr bish

 

[gotmilk]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

chirp chirp

 

[-SD-]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

Barry knows dick about the economy, or really anything for that matter. He just seems to careen from one crisis to another without properly addressing or resolving anything. As evidenced by one of his old stand by speeches about climate change at a college commencement speech he just did.

Iraq? Syria? Russia? Benghazi? IRS? VA? NSA? Labor force participation rate lowest since 1970?

Nah, lets talk about climate change. And since he knows the entire American public has ADHD he knows he can bounce from one thing to the next however he sees fit and we will all forget about the important issues when we have the next shiny object dangled in front of our collective faces.

When he said his campaign slogan was "Forward" he wasnt kidding. On to the next, on to the next, on to the next without any consideration to the present problems. And whatever you do dont look back, that would be very bad.

 

[mrplunkey]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

Voters get the government they deserve.

 

[Dial_tone]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

Voters get the government they deserve.

When are you leaving and do you have any cool shit I might want?

 

[WoodyO]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

Covidien and Medtronic are two of my bigger customers. I need them to open up their wallets for my lil' mom and pop business.

 

[mrplunkey]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

When are you leaving and do you have any cool shit I might want?

Only my tax dollars are leaving, but they've been leaving for several years now.

 

[mrplunkey]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

Covidien and Medtronic are two of my bigger customers. I need them to open up their wallets for my lil' mom and pop business.

I doubt this would impact you very much at all. They'll do business as usual, just as a Irish-domiciled company.

Here's the one caveat: My guess is they are parking their IP in the Netherlands, where income from assets like that are favorably treated. If US-based engineers are doing product development using US-based third-party contractors on US soil, it might be difficult to house that IP in the Netherlands.

One of the trends over the last few years is cracking-down on the relocation of IP by the IRS. So what do companies do? They just relocate the engineers and development people overseas. But that often pulls the subcontract business overseas as well. Cause and effect can be a real bitch sometimes.

 

[billfred]

Re: US Tax Policy Driving US-Based Companies to Buy Overseas Companies and Re-Domicil

I doubt this would impact you very much at all. They'll do business as usual, just as a Irish-domiciled company.

Here's the one caveat: My guess is they are parking their IP in the Netherlands, where income from assets like that are favorably treated. If US-based engineers are doing product development using US-based third-party contractors on US soil, it might be difficult to house that IP in the Netherlands.

One of the trends over the last few years is cracking-down on the relocation of IP by the IRS. So what do companies do? They just relocate the engineers and development people overseas. But that often pulls the subcontract business overseas as well. Cause and effect can be a real bitch sometimes.

Engineers in the Netherlands don't work. Anyone good is living as an expat for the same personal tax reasons.