Market Observations

[Gman]

I was reading a fine example of what happens when our government tries to play with business through the disincentives of taxation just yesterday;
Walgreens may be next big firm to 'move' overseas

Seagate Technology, inventor of 5.25-inch hard disc drive, is a Silicon Valley company, right? Er, no, actually it's Irish.

Jazz Pharmaceuticals, the Palo Alto developer of a host of new drugs, is also an Irish company.


Applied Materials, the 37-year-old semiconductor, equipment and solar company in Santa Clara, is about to turn Japanese.


All three have undergone a "corporate inversion," also known as a "tax inversion," whereby a business acquires an overseas company, switches official tax domicile to the overseas country, and - voila! - no more U.S. taxes on overseas earnings.


"They are, in effect, renouncing their U.S. citizenship to cut their tax bill," noted Max Baucus, former chairman of the Senate Finance Committee, in 2002, just after U.S. companies including Tyco International and Ingersoll-Rand undertook highly publicized inversions in the 1990s.


Now we have Walgreens, about to complete its multibillion-dollar purchase of European drugstore chain Alliance Boots, and perhaps magically become a citizen of Switzerland, as shareholders want. "We're looking at all and everything" in connection with the acquisition, Walgreens CEO Craig Wasson said on an earnings call last week, including "what the structure could do as far as our effective tax rate."

[roberth]

I was reading a fine example of what happens when our government tries to play with business through the disincentives of taxation just yesterday;
Walgreens may be next big firm to 'move' overseas

Smart moves for businesses, if I had one I'd move it too. There is no longer an advantage to being in the U.S., remember what the king said "no country shall be above any other" and this is the result of the king's bullshit...more globalism and US citizens lose their jobs in the process.

[Gman]

Yup. EPS of an additional 75% is no small matter.

Obamacare is a huge incentive for outsourcing as well.

...but everything if fine.

[roberth]

Yup. EPS of an additional 75% is no small matter.

Obamacare is a huge incentive for outsourcing as well.

...but everything if fine.

I'll hear in October if my company is going to continue to provide insurance or if they're going to dump us into the exchange. WooooHooooo socialism is so wonderful, everything is mediocre, no incentive to be the best when you just get taxed more.

[Great-Kazoo]

So where's the hound? He like others, seem to fade out after FACTS are presented, time and time again.

Wonder if the mods might start another Forum. We can call it I'm in Denial. Or How being a progressive has worked for me.

Even better............................................ ... Boozin Pound Puppies.

Since the free thinkers have cute,puppy names and a thing for the cheese head state.

[SouthPaw]

There is no such thing as price gouging. Ask yourself what it is going to cost you to replace said item.

[roberth]

So where's the hound? He like others, seem to fade out after FACTS are presented, time and time again.

Wonder if the mods might start another Forum. We can call it I'm in Denial. Or How being a progressive has worked for me.

Even better............................................ ... Boozin Pound Puppies.

Since the free thinkers have cute,puppy names and a thing for the cheese head state.

Maybe he is reading Henry Hazlitt's book, Economics in One Lesson.

[Great-Kazoo]

Maybe he is reading Henry Hazlitt's book, Economics in One Lesson.

Abridged or on line version?

[roberth]

Abridged or on line version?

I have the book, I don't know about abridged or online versions.

[Bailey Guns]

That's not really fair. It's Sunday and it's nice out. I didn't stay tied to my computer all day.

But I get tired of hearing people bitch about companies moving overseas also. They blame it on the "corporations" because we all know that's become a dirty word. Of course they move overseas. The environment here is just hateful to business.