U.S. Companies Moving Abroad
Unaddressed in the news of yet another corporate inversion (“Johnson Controls, Tyco International to merge,” Jan 25) is how to stop this process of American companies merging with foreign counterparts and relocating abroad.
American companies are leaving in large part to free themselves from the U.S. corporate tax system, whose 35 percent rate is the highest in the developed world and application to foreign profits means that many companies are double taxed.
This system puts American companies at a competitive disadvantage with their foreign counterparts, whose tax systems allow them to have more money on hand to invest, hire, and return to their shareholders, many of whom are pensioners and retirees.
Johnson Controls estimates its move to Ireland will save it around $150 million in annual taxes. But it is Americans who lose and will continue to do so until corporate tax is brought in-line with international norms.
The writer is president and CEO of the Job Creators Network in Atlanta.