Assigned Reading: Swiss Tax Rules Lure McDonald’s From UK
(FROM: Financial Times)
Hmm . . . so the ability to do business for less money is causing large companies such as McDonald’s, Kraft, Procter & Gamble, Google, Electronic Arts and Yahoo! to move overseas operations from headquarters in London to Switzerland.
Now, I know that this article references the overseas operations of these companies and not the primary headquarters, but the lesson remains the same: an increased tax and regulatory burden will inevitably chase business and industry away, so why not make the United States of America just as attractive, if not more so, as Switzerland, or Ireland or Luxembourg?
If the large companies cited in the Financial Times piece are moving, how many other smaller ones are making the same move? How many more are still at the drawing board stage, but are determined to never set foot in the United Kingdom so long as the business climate in Switzerland or the other nations is more pro-growth?
Here we are across the pond, ready to implement a cap-and-trade program that would saddle individuals and small businesses everywhere with skyrocketing energy costs, debating health care reform legislation which would assuage astronomical costs by increased taxes on sole proprietors and entrepreneurs everywhere, and implementing measures to close tax shelters and other mechanisms by which American investors can protect their assets.
Seems like we’re moving backwards to me, ignoring the lessons we’re seeing from across the pond and across the world.