Bernie Sanders Drops a Truth Bomb: Republicans Are Why Burger King Can Bolt To Canada

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On CNN, Sen. Bernie Sanders (I-VT) explained that Republican refusal to make corporations pay their fair share is the obstruction that is allowing companies like Burger King to avoid taxes by moving to Canada.

Video:

Jake Tapper asked Sen. Sanders why nothing has been done about corporations fleeing the country to avoid taxes, and the Vermont senator’s answer highlighted an ugly truth.

Sanders said,

Well, I will give you the short and simple answer is that we have a major political party it’s called the Republican Party who apparently see their goal in life is to represent the wealthy and the powerful and to make sure the rich and large corporations pay as little in taxes as is possible, and that’s the struggle that we’re having. But to my mind, not only is this tax inversion an outrage, we are losing now about a hundred billion dollars in federal revenue every year because many of these large corporations are putting their money in the Cayman Islands, Bermuda, and other tax havens. One out of four large profitable corporations today Jake, pay zero in federal income taxes. So we need real tax reform that asks the wealthy and large profitable corporations to start paying their share of taxes.

….

What they often talk about is the nominal rate, the rate that is on paper which is thirty five percent. According to the last GAO report done in 2010, it should be updated, the effective tax rate is 12.6% not thirty five percent. There’s virtually no corporations that pay the top rate, and as I mentioned a moment ago one out four major profitable corporations pays nothing in federal taxes, and in a given year you have companies like General Electric and Boeing that not only pays nothing in taxes, they actually get a federal rebate.

Jake, here’s another important point. In 1952, corporations contributed about thirty-two percent of the tax revenue of the federal government. Today, that number is less than ten percent, so when you wonder why we have a large deficit and a large national debt one of the reasons is that corporate tax revenues and the percentage of revenues coming in to the federal government is much much lower than it used to be.

Republicans blame a high corporate tax rate and President Obama for companies like Burger King trying to leave the US, but it isn’t true. For decades Republicans have been trying to shift the tax burden away from the wealthy and corporations and on to the people make the least amount of money. The fact that corporations have been able to slash their amount of taxes paid as a share of federal revenue by more than two-thirds shows that Republicans have been successful.

The problem isn’t that taxes are too high. The issue is that Republicans actively obstruct efforts to make corporations pay their fair share. Republicans are enabling corporate tax dodging through blocking all legislative efforts to stop inversions. The truth is ugly, and it something that Republicans don’t want the American people to know.

Republicans want average Americans to pay higher taxes so that the wealthy and corporations can pay less. Bernie Sanders dropped a truth bomb on the Republican Party, and if the American people ever wake up and realize what is going on, the GOP is going to be in for a world of hurt.

29 Replies to “Bernie Sanders Drops a Truth Bomb: Republicans Are Why Burger King Can Bolt To Canada”

  1. And do you know who is leading the pack on this? Boehner and Dave Camp, who own stock in the companies that move, and then profit handsomely from their lack of taxes. Sick. Just how do these companies think roads get built, schools are maintained so they can attract employees, sewer and water systems maintained so they aren’t killing people? And who do they call if there’s a fire or a break-in? Yeah, police and fire WE pay for, not them. They should be ashamed, but I have yet to find an overpaid CEO or any Republican who is ashamed of their greed. They break every single commandment in both parts of the Bible they pretend to cling to, and laugh all the way to their island retreats. Shame on all of them. Vote Democratic, and give the US a chance!

  2. The key phrase in the article is “if the public ever wakes up the Republicans will be in a world of hurt” Will the public wake up? So many people are not engaged in politics or take the time to know the true facts. I hope they do before it is too late. Vote!

  3. 44% of Burger Kings business is done in America the larger part is done in Canada etc. The issue that has come up is like any multinational that does business in the US, BK-TH will owe (and pay) tax on its US operations, regardless of where it is incorporated. The question is whether they should have to pay tax to the US on income they earn in Europe or Asia or wherever. So lets be clear about this.

  4. You would think when Bush promised to cut your taxes and the middle class lost income
    David Cay Johnston calculated the average income of Americans between 2001 and 2012 — the years President George W. Bush’s tax cuts were in effect. After adjusting for inflation he compared that income with the average income in 2000, and determined that $6.6 trillion was missing.

    “Consider what $48,000 of additional income over those 12 years would have meant to you,” Johnston wrote. “It is the equivalent of $11 appearing in your wallet every morning from the start of 2001 through the end of 2012.”
    http://www.rawstory.com/rs/2014/07/10/report-6-6-trillion-lost-on-bush-tax-cuts-could-pay-all-student-loans-car-loans-credit-cards/

    So in so many words while the Burger Kings of the world are getting out of paying their fair share republicans have their paws in your wallet stealing your money.How they get away with it? Americans are clueless

  5. And who benefits more from the work that government does–lower-middle-class people, or big corporations? Corporations depend on the government to enforce the entire legal system, a system which protects their patents and copyrights and contracts. Absent that, they would have to depend on warlords! Corporations benefit tremendously from all the infrastructure, such as the Interstate highway system, air traffic control, and the Navy to protect their ships at sea. And then there are the direct payments to corporations. Take away the government and they are dead in the water. They should be proud to pay taxes!

  6. The tax they pay in the US will be offset by what they pay in canada. If BK owes uncle sam 350.00 on a $1000.00 profit, that 350 will be offset by the $150 they pay to Canada due to Canada’s lower tax rate

  7. “The proposed Burger King deal would not only expand the chain’s reach, thus creating the world’s third-biggest fast food brand; it would provide the corporation with a money-saving Canadian tax base. Investors apparently liked the news, too, as Burger King saw its stock prices soar Monday. President Obama, however, has repeatedly admonished companies hoping to find a way around America’s high taxes, which often makes basing businesses in the U.S. financially unfeasible.” (Ferdman, 2014)

  8. FWIW, Burger King is now owned by a Brazilian company as is the Budweiser brand.

    Neither has to move to Canada, they can “Fly down to Rio”.

  9. I was thinking about how states and countries cannibalize each other’s businesses by offering tax givaways etc…

    What is the net effect when communities doesn’t have a tax base to provide services that while people may say we want small government and other nonsense if they don’t have those services they pitch a bitch about it.

    So where do communities go to make up for that lost revenue? Well the events these past couple of weeks gave us a answer. Ferguson

    They will impose a poor and middle class tax in the form of fines, fees and for the unlucky few who own homes property taxes. This hit the poor more because they don’t have the money to fight and when they lose they become as they indentured servants of the state.

    So while race played a part in the protest it just may be the taxation without representation that set everything off. Cause and effect.

    So those who take delight in corporations moving to avoid taxes in the long run it is you that will pick up the tab.

  10. Americans who object to the behavior of Anti-American Companies who fly the flag while they bilk America should simply stop buying from them. Boycott their products. Too big a price to pay you say?….. Then quit complaining. You are part of the problem.

  11. Canada has higher corporate and personal tax rates than the USA. That famous free health care is paid for through taxation.

    Canada is one of the few nations which has a reciprocal taxation agreement with the USA too. Income from American operations will be get American tax treatment.

    There may be operational advantages to running a company from Canada, but tax savings won’t be on the list.

  12. Over on Briebart, Paul Ryan is claiming that it is President Obama’s fault that American companies are leaving the US.

    I am more inclined to believe Senator Sanders, base on Paul “Lying” Ryan’s previous hyperbole.

    “…two men say they’re Jesus, one of them must be wrong….”. Industrial Disease by Dire Straits

  13. find a corporation that actually pays our tax rate
    ““““
    Plenty exist, but there are certainly distortions in the rates corporations end up paying.
    How about abolishing the corporate income tax and tax American shareholders at ordinary income rates on their annual dividends and capital gains instead?
    Multinational corps. currently based in low-tax countries might suddenly see the huge advantage of headquartering themselves in the no-tax U.S. and the shift would have the potential to be fast and dramatic. More investment = more jobs, increased U.S.
    corporate activity would benefit the American middle class and wages would rise, all the distortion and disparity in corporate taxes would be gone and tax lobbyists would be out of business.
    I’ve seen the idea tossed around and just thought I’d throw it out there.

    http://www.kotlikoff.net/sites/default/files/CorporateTaxPaper_Current.pdf

    You can pick it apart and I’ll see it later. Gotta go to work.

  14. Actually Bob, From 2002-2008 average U.S. corporate profits were at an annuual rate of 1.9 trillion, and profits were up 178%, triple the rate during the last three months of the Bush administration. During the same period wages rose an average0.3%. With those numbers corporations can afford to pay their taxes, pay a living wage and benefits to their employees, and pay their investors a fair divdend. Instead they choose to be traitors to the country that helped them become so successful.

  15. Sen Sanders. what are you doing to get the tax code re-written? What is anyone? The tax code change to stop inversions is just an excuse for the repblicans to claim “class warfare” cost jobs to high corporate (35%) tax blah blah blah. We can all see that it is bad we need someone to take action and then bang the drum

  16. 1) Starbucks did this some time ago. I have a lot of lefty friends who still think starbucks is the “hip” place to go. I don’t recall any outrage from them back then. Why?

    2) Warren Buffet and Berkshire/Hathaway (favorites of the Left) are the financing arm for the Burger King / Tim Horton deal. Haven’t seen any outrage directed at them either.

  17. I just don’t get it with you baggers. You are either liars/cant read or both.
    Starbucks did not move their US headquarters. What they did do was move their European headquarters, you can find Europe on a map, if not get an Atlas, please tell me you know what that is, I digress. As I was saying they moved their European headquarters from Amsterdam to London. What’s that? What state is that? This will be a lot harder than I imagine

  18. I get so sick of these stupid party’s bashing each other and they want more tax’s . If they would hold back on there spending they would have enough money. And the Co’s. Would not move to save tax’s. The USA has a higher tax rate than any other country in the world . What does that tell you ? It’s no wonder Company’s want to move out !!! Some one needs to use a little sense lower the tax rate . You live your life at home ,always in debt ? Don’t you ever think about retiring but where’s the money? Save instead of always spending !!!

  19. You might stop and think about the fact that most companys dont pay the US rate. Companys like GE even get money back.

    Also, YOU have to make up the difference if corporations dont pay the taxes.

    This is sheer greed. At YOUR expense.

  20. Actually, Canada has a lower federal corporate tax (Canada 11-15% vs USA of 15-39%) and lower federal personal tax (Canada 15-29% vs USA 10-39.6%)

  21. An effective rate of less than 15% is better than capital gains! If a business entity (s-corp, c-corp, or LLC/P) exists in the US, the revenue taken within the US by that entity should be taxed. Sanders is right, companies that leave show no loyalty to America. If a company wants to leave the US, then that should mean they CANNOT do business here with entity/liability protection. If revenue is earned in America, it cannot be allocated to a entity in a foreign nation. All revenue earned in the American market should be subject to American tax law, not funneled. If corps leave, then another company will take their place. Let the American people see the companies who leave so we can stop buying from them. I am sure we can find a business for every industry that is willing to pay less than 15% on their net income. The american market is too large for most companies to just ditch. They’ll pay the taxes.

  22. Uh wait a minute Bernie. If Republicans were allowing BK to avoid taxes here in the US, why would they move to Canada to avoid US taxes? I have another newsflash for you Bernie. It’s called free enterprise to be able to make business decisions that increase profitability. And Bernie seems to forget that there will still be Burger Kings in the US that employ Americans. But of course the liberal nut jobs want tax prisoners that work to pay taxes that will be squandered by politicians. So not only do they want the American people to pay excess taxes, they now want corporations to be taxed out of business as well. Please tell us Bernie, how many people the government is able to employ strictly by earning the money themselves. Uh maybe the US Post Office. But wait, that’s run more like a business in that we the people don’t pay for it unless we use their services. However the Bernie way is to force Americans to pay for services they don’t use.

  23. TO: A(N?) PATRIOT (?)
    ANTI-SOCIAL PSYCHOPATHOLOGICAL DRIBBLE.

    Signed,
    Arthur Conan Doyle :) :)

    PSP: YOU ARE AS SOCIOPATHIC AS I S I S, OR THE P O- L I C E.

  24. Isnt it funny how the tea party which is now a religious fanatic group convinces people they are patriots just because they buy a 3 cornered hat?

    BTW, its PS, not PSP and its ok to say police

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