Oh Canada!Sep 04, 2014
In his response to the decision by the Supreme Court to stay the Fourth Circuit’s government approval of same-sex marriage, Governor Terry McAuliffe said:
“Building a new Virginia economy means creating an environment that is open and welcoming to all, where world-class innovators and entrepreneurs can locate without fear of discrimination. That is why my first act as Governor banned discrimination in the state workplace based on sexual orientation and gender identity, and why I support marriage equality in Virginia as a key ingredient of that economy of the future.”
The implication is, of course, that businesses make decisions about where to locate based on something other than their bottom line.
Which makes “gay friendly” Burger King’s announcement that it is in talks to buy Canadian chain Tim Horton’s in a complicated tax inversion transaction, which will allow it to escape the U.S. corporate tax and relocate its headquarters to our northern neighbor all the more interesting. Burger King’s decision has sparked liberal outrage.
President Obama has said that he believes this type of deal is “unfair” and is contemplating executive action to stop such transactions (because apparently a President has the power to stop an American business from making its own corporate decisions), while Ohio Senator Sherrod Brown has called for a boycott of Burger King.
Perhaps Governor McAuliffe’s first action as Governor should have been to reform Virginia’s tax code to make the Old Dominion more attractive than, say, North Carolina? Or urged President Obama to do something about the U.S. tax code that is driving companies to other nations?
Doesn’t it make more sense to tackle our complicated and outdated federal corporate tax system that is 46.4% higher than Canada’s, (yes, you read that right, Canada’s corporate tax structure is 46.4% less than the United States’) to be more competitive? To create jobs? To lure companies to America rather than drive them away?
Never one to let common sense or basic economics cloud their judgment, the liberal elites in our nation respond “of course not.” They want to punish companies seeking a lower tax rate and are contemplating ways to legally require corporations to stay put and pay higher taxes. After all, why try and be competitive with Canada and spur economic growth when you can chain a company to a higher tax structure
I just have to say it again. Canada’s corporate tax rate is 46.4% lower than ours.
I guess we have to start taking Canadians seriously. Does that mean we need to stop the Canada jokes?