Trent: Republicans Can Learn a Lot From Burger King's Move to Canada
9-3-2014
Since 2003, more than thirty-five major American companies have moved their headquarters and reincorporated overseas. Rather than rail against such “inversions” as President Obama does or call for an economic boycott as Ohio’s Democratic Senator Sherrod Brown does, we should figure out what is driving American companies beyond our borders. Here’s a clue: the United States now has the highest corporate tax rate of any industrialized country, and the Wall Street Journal reports the Obama administration is “even now looking for ways it can unilaterally raise corporate taxes without going to Congress.”
Canada has long been both our more socialist and consequently, our poorer neighbor to the north. But that has changed over the last two decades. Starting in 1995, Canada has drawn back from a public debt precipice, restrained government spending and dramatically overhauled its tax system. Next year, it will also begin unilaterally reducing tariffs on thousands of manufactured goods—recognizing that free trade makes for wealthier consumes and a more prosperous society.
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