Chris Chocola: US Companies Renouncing Citizenship To Survive

Thursday, 17 Jul 2014 02:34 PM

By Courtney Coren

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Several American companies are moving their headquarters overseas and essentially renouncing their U.S. citizenship through a practice called tax inversion to survive and remain competitive, says Chris Chocola, president of the conservative anti-tax group Club for Growth.

"These companies are trying to compete in a global marketplace and they're trying to compete against companies that have a much lower tax burden and therefore their overall costs are lower so they're more competitive," Chocola told John Bachman on "America's Forum" on Newsmax TV. 

Story continues below video.

Note: Watch Newsmax TV now on DIRECTV Ch. 349 and DISH Ch. 223
Get Newsmax TV on your cable system – Click Here Now

"So it's just math," he explained. "It's just trying to compete and the reality of today's market place which is global and so they're trying to find a way to be able to lower their tax burden."

According to the Club for Growth president, Congress needs "to engage in meaningful tax reform, which would be one of the most pro-growth things we could do for our country."

The way companies are able to engage in tax inversion is by purchasing or merging with a company overseas and then claiming the new company as their headquarters.

Salix Pharmaceuticals Ltd. recently announced that it would be merging with an Irish company for the purpose of lowering its taxes. Other companies that have made similar moves includes the pharmaceutical company AbbVie Inc. and the medical device maker Medtronic Inc., both of which purchased companies in Ireland. 

The drugstore company Walgreen Co. recently acquired the European drugstore chain Alliance Boots and is also in the process of considering changing its tax domicile to Switzerland, where that company is based.

American companies are trying to escape the 35 percent corporate tax rate, which is the highest corporate tax rate in the industrialized world.

By establishing a new tax domicile, companies are able to avoid having the United States impose taxes on overseas earnings.

Economist Stephen Moore told Newsmax that the U.S. corporate tax rate is pushing these companies out of the country. 

Treasury Secretary Jack Lew is asking Congress to enact legislation to penalize companies that try to move overseas to lower their tax burden. 

Lew said at a business conference hosted by CNBC in New York that U.S. companies "should have some economic patriotism here."

"Secretary Lew accused these CEO's of these companies of being unpatriotic," Chocola said.

"The only unpatriotic thing is running these people out of the country and running the jobs out of the country," he added.

"Joe Manchin's West Virginia Senator, Democrat, his own daughter runs a pharmaceutical company and she just did this and her point was, 'you can't maintain an uncompetitive situation, you just can't do it, the odds are just not in your favor,' she says, 'to be able to stay in business,'" the Club for Growth president explained.

"It's just a practical thing these companies have to do to survive," Chocola added. "And they can't get the attention of the United States Congress or this president to engage in meaningful tax reform that would help keep them here, grow the jobs and grow economy."

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Rush Limbaugh's Call Screener: Liberalism 'Horrific' to Black Communities

Sunday, 21 Sep 2014 22:23 PM

Calling liberalism's effect on black communities "horrific," the longtime call screener for Rush Limbaugh says that for  . . .

Activist Suing Over NYC Refusal to Put Anti-Jihad Ad on Buses

Sunday, 21 Sep 2014 20:00 PM

Activist Pamela Gellar is suing the New York City transit agency for refusing to place her anti-Jihadist ad on the city . . .

Panetta: Obama Wrong on Iraq Pullout, Failure to Arm Syrians

Sunday, 21 Sep 2014 19:36 PM

Former Defense Secretary Leon Panetta says his old boss, President Barack Obama, erred when he failed to leave a residua . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved