The corporate tax rate in the United States is 35%, the highest of all developed nations. So more and more companies are practicing “inversion,” a transaction on paper that relocates their corporate home (while leaving most operations and employees where they are) to another country, such as Ireland, where the corporate rates are 12.5%.
Even President Obama wants to lower corporate rates–to 28%–and Republicans would like it much lower, but tax reform has been going nowhere, so lots of companies are making their move. Do you blame them? Are they un-patriotic or just doing what they have to do? [Read more...]