The United States' high tax rate is forcing company to consider leaving the United States and establishing their corporate status in other countries, says economist Stephen Moore.
Moore cited the example of drugstore chain Walgreens, which is considering renouncing its U.S. tax citizenship
to escape the steep corporate tax rate of 35 percent.
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"This is a big, major problem that almost all policymakers should really recognize — which is the United States now has the highest corporate tax rate in the world," Moore told J.D. Hayworth on "America's Forum" on Newsmax TV
Walgreens is about to acquire the European drugstore chain Alliance Boots and is considering doing a corporate inversion, also called a tax inversion, which means changing the tax domicile of the company to the overseas country. If that were to occur, the U.S. would no longer be able to tax earnings overseas, the San Francisco Chronicle reported.
"It's sending jobs overseas to countries like Singapore and countries like Taiwan and countries like Indonesia and Switzerland and other countries that have lower rates because tax rates matter and investment flows to those countries on balance that have lower tax rates," he added.
According to Moore, this is the third "major iconic American company in the last month or so that has talked about moving out of the United States."
Medtronic Inc., a major medical-device maker, is planning to move to Ireland
, and pharmaceutical giant Pfizer Inc. is "investigating" a move to Ireland.
"We're not going to have any corporations or jobs left in this country if we don't do something about our corporate tax rate," Moore contends.
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