Americans are always on the hunt for a good deal. Whether it’s a new house, new car, or groceries, we are careful to make sure we are spending our money wisely. And significantly, when it comes to our tax returns we would prefer to hand back as little of our hard-earned money as possible to Uncle Sam.
Those running for higher office are certainly not averse to looking for a lower tax rate when it comes to paying their income taxes. While the GOP presidential nominee Donald Trump refuses to release his tax returns, he acknowledges at the same time that he works “very hard to pay as little tax as possible.” Even Senator Bernie Sanders, who rails against high income earners paying less taxes than blue collar workers, paid a lower tax rate than many Americans.
So it shouldn’t be surprising that American businesses are on the same hunt. Unfortunately, thanks to our complex tax code, that hunt often ends in what’s called an inversion – a U.S. company and foreign company merge – with the resulting corporate headquarters located overseas under a lower tax rate.
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