August 18, 2014

The Left’s Twisted Logic on Corporate Inversions

George Will: “Progressives say corporations using inversions are unpatriotic, which is amusing. When the Supreme Court’s Citizens United decision stipulated that Americans do not forfeit their First Amendment right to political advocacy when they act together through corporations … progressives ridiculed the idea that corporations should be treated as people. Now, progressives charge that corporations resorting to inversion are not behaving like patriotic people. … Inversions strengthen the U.S. economy by increasing the after-tax profits that U.S. corporations have for investment, by increasing the pool of profits available for the wages of U.S. workers, and by making the companies’ U.S. shareholders wealthier. Which is why the sensible corporate tax rate would be zero. This is so because corporations do not pay taxes, they collect them, necessarily passing on the burden as a cost of doing business. … This illustrates the grandstanding frivolity of the political class. It legislates into existence incentives for what it considers perverse behavior, and then waxes indignant when businesses respond sensibly to the incentives.”

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