When Burger King says inversion
, they don't mean putting the cheese under the patty;
King is in talks to buy doughnut chain Tim Hortons and create a new
holding company headquartered in Canada, a move that could shave its
an overseas shift, called a tax inversion, has become increasingly
popular among U.S. companies and a hot political issue. Burger King was
founded in 1954 with a single restaurant in Miami, where it is
And where there is no state income tax, we add.
Shares of Burger King and Tim Hortons both jumped 17 percent before the opening bell, heading toward all-time highs.
The market tested positive.
a tax inversion, a U.S. company reorganizes in a country with a lower
tax rate by acquiring or merging with a company there. Inversions also
allow companies to transfer money earned overseas to the parent company
without paying additional U.S. taxes. That money can be used to reinvest
in the business or to fund dividends and buybacks, among other things.
And enrage politicians in the higher tax countries who want the the money for their own selfish purposes (enhance their power over others' lives).
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