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Facebook Finds Grass Greener In Ireland
theodp writes "Facebook announced it has chosen tax-haven Dublin for its international HQ, but not all are buying COO Sheryl Sandberg's line about local world-class talent being the motivation behind the move. The Irish Times recently reported that Irish subsidiaries owned by US multinationals are opting to convert to unlimited liability status, concealing the financial performance of their Irish operations from public view. They include Microsoft's incredibly profitable Irish subsidiaries Round Island One and Flat Island Company, Google Ireland Holdings, and a subsidiary of Apple Computer. The conversions have occurred as US tax authorities have increased their scrutiny of international mechanisms used by American multinationals to reduce their taxes at home."
One thing that I imagine can be agreed upon (?) is that despite Obama's protestations to the contrary, his plans will only increase this flow. Or do you think that corporations with business and arms around the world will want to stick around for higher tax rates and an administration that has relied on anti-corporate populism?
Lower taxes means that corporations are more likely to come and play in your playground, thus leading to increased economic activity and employment in the area.
America could increase it's economic activity if it decided to lower taxes (and that also goes for individual states as well) but politicians would rather put some crazy ban on outsourcing than actually combat the problem: ridiculously high taxes.
It's an extreme example, but just compare Hong Kong to the rest of China. Which area has less regulation, and which one would you rather live in? It goes without saying, honestly.
I'll probably get modded down by some crazy armchair e-warrior socialist, but whatever.