Economist: US Firms Seeking Mergers Abroad to Escape Taxes

Thursday, 17 Jul 2014 09:37 PM

By Sean Piccoli

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
American companies are turning in their U.S. passports to avoid paying the world's highest tax rate on business income, an investment economist told Newsmax TV "MidPoint" host Ed Berliner on Thursday.

John Browne, senior economic consultant to Connecticut-based Euro Pacific Capital, defended the latest wave of  "inversion" deals — in which companies here reincorporate abroad by acquiring overseas firms — as a legal and logical response to an increasingly unfriendly American business climate.

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

"These are not tax havens like Bermuda or the Caymans, which have zero tax," said Browne. "There are other things besides tax that are important: patent protection, physical protection, police, law and order, a legal system and the local market."

Companies can find all of those attributes, and a much lower corporate tax rate, in countries such as Ireland, Switzerland and Great Britain, said Browne.

U.S. Pharmaceutical companies "inverting" to Ireland are the latest hot trend in big business.

But the Obama administration's Treasury Department wants Congress to put a stop to the practice — employed by about 50 U.S. multinational companies in the last decade.

Browne said the U.S. government would be better served cutting taxes.

"Having the highest tax rate in the world – at 40 percent – is making American business extremely uncompetitive for actually earning money," he said.

Related Stories:


© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  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
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

FALN Victim's Son: Return 2 Cop Killers Living in Cuba to US

Friday, 19 Dec 2014 17:45 PM

Two cop killers brazenly living in Cuba must be returned to the United States now that new diplomatic relations have bee . . .

Gordon Chang: NKorea Didn't Act Alone in Cyberattack

Friday, 19 Dec 2014 16:58 PM

North Korea did not act alone in its devastating cyberattack on Sony Pictures, as President Barack Obama asserted on Fri . . .

Foreign Correspondent: Russians Starting to Question Putin

Friday, 19 Dec 2014 16:49 PM

The Russian people are starting to question Russian President Vladimir Putin after the collapse of the ruble on Tuesday, . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

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