Corporate Inversion/Tax Inversion Essay

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As we have seen through a multitude of businesses, the inferences of topography have influenced mankind. Cities are a populace lure due to the ease of access to sources of energy and arable soil which in turn encourage economic growth. Physical location has truly been a major factor to triumph or catastrophe throughout history. The United States is concurrently repeating history as we know it. The foundation of this great nation was fueled by the dreams of having economic freedom as well as religious from a subjugated country of the Old World. The New World presented opportunities that could alleviate everyone from substantial taxes that were to be paid to England, which a majority of the population had rejected. This is also becoming a reality in today’s world, whether it is inversions or movement of corporations to other countries that bestow superior prospects for financial and economic development. Corporate Inversion has become a much popular trend in the past few years. This is definitely a possible topic that may “stir the pot” with our clients and shareholders. Our firm could ultimately adopt this option, buy a foreign company, and implement our corporate headquarters overseas. Some financial experts believe that U.S. companies that are re-incorporating outside of the U.S. in order to avoid taxes are relinquishing their citizenship to cut their tax bill. It does not matter if you are democratic, republican, or independent, the outcome of corporate inversion is not only for the reduction of taxes but also a cure to repatriation of earnings overseas. Unfortunately our firm pays a corporate tax of 40% which is broken down to 35% federal and 5% for state and local. This is significantly higher than the international average which is between 0% and 16%. It is no wonder why this has become such a popular choice for all corporations. Significant issues our

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