Public Shaming Is Working
Posted by taxguru on August 6, 2014
The campaign by the BHO Regime and its MSM allies to shame companies into avoiding tax savings strategies, such as shifting income to lower tax countries, seems to be working. Walgreens just announced it will keep its corp HQ in the USA rather than move it to an overseas country with much lower tax rates. According to this news story, the potential negative publicity over this tax savings strategy was a key factor in the decision.
We can expect more of this kind of pressure to be exerted on companies and persons who use legal tax savings techniques. They will be labeled as “evil” and “unpatriotic” for having the gall to want to hold onto more of their hard earned income.
By no means am I advising against using tax savings strategies. However it would also be wise to not broadcast it to the world. Those who can’t or won’t use those ideas themselves will just resent you and possibly influence their elected representatives to reduce or eliminate them. That is how we lost the deduction for 50% of business meals and the depreciation on expensive cars. People who were taking those deductions bragged so much about them that the resentment worked its way to DC. If you are using great tax savings tactics, keep it between yourself, the IRS and your professional tax advisor.
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