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What is “Corporate Inversion” & Why Is It So Important This Election Cycle?
D.W. Ulsterman
The formal definition for the term corporate inversion details it as a “strategy” by which a company will selects a country with a lower tax rate to subsequently “stash” profits through a newly formed foreign based corporation.
The D.W. Ulsterman version goes something like this:
Corporate inversion is the predictable result of a country (the United States) creating an anti-business tax environment that results in companies and therefore jobs to flee overseas, ultimately resulting in less taxes being raised, and millions more citizens becoming further dependent upon government.
The above graphic lays it out quite clearly.
If you are reading this right now and wish you either had a job, or a better job, corporate inversion is one of the primary reasons you have been unable to do so.
FACT: Most estimates place the current corporate inversion amount related to U.S.-based companies to be around TWO TRILLION DOLLARS.
As a purely dollar-to-dollar exercise, there are “experts” who will claim that corporate inversion in and of itself does not cause loss of American jobs. That is akin to saying rain in and of itself does not cause snow…except of course when the temperatures drop. The process is in fact very much related.
Corporate inversion is a byproduct of a much greater issue.
Corporate taxes are too damn high. When such an environment exists, companies seek shelter from that anti-business storm. It is why factory-based jobs have been so greatly diminished in America. In fact, if blue collar labor unions had been more understanding of basic economics, they would have long ago been screaming for lower corporate tax rates in the United States as the single greatest means of protecting the very jobs they claim their unions dues are working to save.
The American Middle Class is disappearing. During the painful tenure of the Obama years, Middle Class wages have shrank even as the cost of living has increased. Quite literally and more notably than at any other time in recent history, the rich have become richer and the poor that much more poor.
Read more at Ulsterman Books here:
http://ulstermanbooks.com/what-is-corporate-inversion-why-is-it-so-important-this-election-cycle/
