Freeloading corporations

Lately, a flood of large corporations have decided to purchase small foreign companies in order to change their legal structure so that the foreign company becomes their new headquarters. This is called “inversion,” and it allows the companies to pay taxes according to the laws of their new headquarters country; much lower taxes than they currently pay in the United States.

There are numerous problems associated with inversion. The U.S. tax bill doesn’t go away. Consumers and small businesses have to pick up that tab and these corporations will still benefit from those things we all benefit from: our health care and education systems, our roads and the income they enjoy making in America. They just don’t have to pay American taxes anymore.

We all have to pay taxes – our fair share. Those companies that decide they can freeload through inversions should be boycotted or, at the very least, Congress should introduce a bill that blocks them from reincorporating outside of the U.S. while keeping the same benefits the rest of us have.

Joe Speranzi

Spokane