What's new in today's world? Corporate inversions.
A company buys a foreign subsidiary and then through the magic of paperwork proclaims itself a foreign company owned by the subsidiary, all for the purpose of paying less in taxes.
Congress estimates that inversions will cost the treasury almost $20 billion over the next 10 years. Fortune magazine believes that it will cost much more. President Barack Obama is against this tax loophole and will support legislation that mandates a company must be more than 50 percent owned by a foreign entity to escape U.S. taxes.
Sounds reasonable enough, but of course Republicans disagree. Anyone surprised?
GOP senator Rob Portman calls these corporations "economic refugees." Well then, since the Supreme Court has ruled that corporations are people, shouldn't we stick to our normal policy and send them back to where they came from? Wait a minute, that's here!
We know how conservatives feel about individuals who take advantage of government programs they're legally entitled to. They call them "parasites" and "takers." But when it comes to corporations that, on a much larger scale, screw the U.S. people while still enjoying all the infrastructure and security benefits said government provides, they argue they have a fiduciary obligation to their shareholders.
The corporate tax rate is 35 percent, yet most corporations pay 16percent or less. And it will never be low enough to suit their "patriotism."