Walgreen Moving Overseas?
Corporate taxes are too high.
American drug-store chain Walgreen is reportedly considering moving to Europe just to avoid the burden of U.S. taxes. Walgreen recently acquired Swiss-based Alliance Boots, and it could use the opportunity to save billions of dollars a year. Walgreen’s U.S. tax rate is 37.5%, while Alliance Boots’ rate in Europe was a much more manageable 20%. Investor’s Business Daily reports, “Last week, Senate Finance Committee chief Ron Wyden, an Oregon Democrat, reported U.S. corporations now hold $2.1 trillion in earnings in overseas accounts – a massive amount, roughly equal to 12% of U.S. gross domestic product.” Clearly it’s time to reassess the U.S. corporate tax rate if we want business and investment to remain on American soil.