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Wednesday, August 6, 2014

Walgreens Won't Move Headquarters Overseas to Avoid American Taxes

Posted by on Wed, Aug 6, 2014 at 1:58 PM

GOOD ON YA Friendly neighborhood $TK billion drug store company!

The nation's largest drugstore chain is acquiring Alliance Boots, a Switzerland-based drugstore chain with stores in England. But it won't attempt to relocate its headquarters overseas to take advantage of lower tax rates—a move known as a tax inversion.

Sky News reports:

Sources on both sides of the Atlantic said that Walgreens is likely to disclose as part of its announcement that it intends to remain a US-domiciled company rather than pursuing a so-called tax inversion which would involve moving its corporate headquarters to the UK or Switzerland.

The news will represent a significant victory for President Obama, who said recently that US companies which moved their headquarters overseas to save tax were damaging the country’s economy.

"My attitude is I don't care if it's legal, it's wrong," he said in July.

Wall Street is not happy. One of the factors in the company's decision? The risk of "consumer backlash." Damn straight.

 

Comments (11) RSS

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Pope Peabrain 1
I don't think they need to worry about backlash. Corporate America has been fucking us for years and we still give them more of our money.
Posted by Pope Peabrain on August 6, 2014 at 2:21 PM · Report this
3
They'll wait a quarter or two and do it when the furor dies down.
Posted by unpaid reader on August 6, 2014 at 2:24 PM · Report this
Call me Scott 5
Bartell Drugs . . . not only US-based, but Washington State based.
Posted by Call me Scott on August 6, 2014 at 2:55 PM · Report this
Will in Seattle 6
What @5 said
Posted by Will in Seattle http://www.facebook.com/WillSeattle on August 6, 2014 at 2:55 PM · Report this
keshmeshi 7
@2,

I don't know about the UK, but does it occur to you that Switzerland can offer low corporate tax rates thanks to the thievery of its huge financial sector? Not exactly something I want the U.S. to emulate.
Posted by keshmeshi on August 6, 2014 at 3:42 PM · Report this
Will in Seattle 8
@7 is correct
Posted by Will in Seattle http://www.facebook.com/WillSeattle on August 6, 2014 at 5:05 PM · Report this
10

What are their competitors -- Rite-Aid, Bartells -- doing?
Posted by Supreme Ruler Of The Universe http://_ on August 6, 2014 at 5:37 PM · Report this
11
I know I must be easily annoyed, but why does the store call itself Walgreens and not Walgreen's when it was founded by a man names Walgreen. Where's the damned apostrophe huh? And why do you have Tully's Coffee, but not Starbuck's Coffee?
Posted by Weekilter on August 6, 2014 at 5:57 PM · Report this
NotSean 12
@11 Pike's Plays' Market
Posted by NotSean on August 6, 2014 at 7:34 PM · Report this
Will in Seattle 13
No, Starbucks opened a bigger store in Fremont where Peet's was. Official start is Friday.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on August 6, 2014 at 9:18 PM · Report this
14
@ 2 the top personal tax rate in UK is over 90% they also have a VAT (Value Added Tax) which is kinda like a super sales tax, and they tax Gasoline and Diesel for general revenue. 4.25 a liter anyone?

So, those countries have lower corportate rates and higher personal rates because people can't move as easily as corporations.
Posted by gomer on August 7, 2014 at 9:36 AM · Report this

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