Bad for Hawaii’s Businesses: Tax Inversions by Multinationals

I don’t find Washington politics that interesting, to be honest. I know I will have more effect on my standard of living by getting up every day and providing value for my clients and love to my family than complaining about what happens in Washington. I don’t feel getting all riled up about politics and politicians to be that productive.

Two things, however, get my goat. I don’t like waste, and I don’t like unfairness. I expect all my community to pay its fair share of taxes, as I do, and when the government has my money, it should not waste it.

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It seems, however, that something has gone vastly wrong in our country. Today I heard of another merger of companies—Tyco International and Johnson Controls—which will become “headquartered” in Ireland to save the businesses about $150 million in U.S. corporate taxes. The Pfizer and Allergan merger is expected to “save” them billions of dollars a year by becoming “headquartered” in Dublin, Ireland. This is called tax inversion.

This charade has to stop. I suspect that none of the executives, head offices, R&D facilities, production facilities, marketing departments, etc. will be moved to Ireland. It’s simply moving the business registration abroad.

These companies will still benefit from all things taxes pay for in the United States: IP protection, a transparent legal system, military spending and national defense, research grants and subsidies, federal highways, ports, health care subsidies and all the state and local benefits like schools, police and roads.

Tax inversion lets some of the biggest companies in the world receive all the benefits of United States without sharing the tax burden of what supports these benefits. In other words, they are taking a lot and giving very little. In the long run, we can’t all be takers if there are not enough givers.

Sure, you can argue that the law allows them to do this, and any sane business executive would be foolish not to take advantage of ways to lower taxes and provide a better return on investment to shareholders. I get this.Watch Full Movie Online Streaming Online and Download

The laws need to be changed. I don’t know the how or what: much smarter people than I should figure this out.

As a small business owner, I pay a lot of taxes, but it would be impractical, very difficult and, indeed, unethical to shirk my tax responsibilities. It’s all about fairness.

In the end, when the large multinational corporations avoid taxes, someone has to make up for that revenue. It will fall, in part, on the small and medium-sized businesses in Hawaii.

If you, too, you find tax inversion to be something that is contrary to principles of fairness and good governance, let your representatives know:

Hawaii’s Elected Leaders

Senator Brian Shatz
300 Ala Moana Blvd., Rm 7-212
Honolulu, HI 96850

Senator Mazie Hirono
300 Ala Moana Blvd. Rm 3-196
Honolulu, HI 96850

Congresswoman Tulsi Gabbard
300 Ala Moana Blvd, 5-104
Honolulu, HI 96850

Congressman Mark Takai
300 Ala Moana Blvd, 4-104
Honolulu, HI 96850