With Republicans having won control of both houses of Congress, the reduction of corporate tax rates suddenly has a realistic chance of happening in 2015.
Now that the Republicans have real political power, they can't afford to continue a policy of simply thwarting President Barack Obama. That means focusing on issues where the two parties can find common ground . -- and corporate tax reform tops the list. All sides agree that this is a problem that needs to be fixed.
With Republicans having won control of both houses of Congress, the reduction of corporate tax rates suddenly has a realistic chance of happening in 2015.
Now that the Republicans have real political power, they can't afford to continue a policy of simply thwarting President Barack Obama. That means focusing on issues where the two parties can find common ground . -- and corporate tax reform tops the list. All sides agree that this is a problem that needs to be fixed.
But for U.S. companies, there's just one problem...
It appears that the move by Warren Buffett-backed Burger King Worldwide Inc. to buy iconic Canadian fast food chain Tim Hortons Inc. (USA) and relocate to Canada to lower its corporate tax rate was the straw that broke the camel's back when it comes to tax inversion deals.
One has to wonder whether the wily Mr. Buffett was not only trying to make money but doing his best to accelerate much-needed tax reform when he agreed to finance BKW's expansion into the northland...
Hauling Apple's CEO Tim Cook to Washington last week to get berated in front of a Congressional committee was sadly nothing more than typical DC kabuki theater.
Corporations have been using similar tax dodges for decades and Congress has always harrumphed and looked the other way. Perhaps because real tax reform would have real consequences?
If Congress actually has the nerve to grab some sketchy offshore corporate revenue, you need to know what it means for your stocks.
