This one is too good to be true.
Burger King is planning to buy Tim Hortons – a Canadian coffee-and-doughnut chain.
Forget for a second that this is 2014 and doughnuts are, shall we say, a bit out of fashion,
Conventional wisdom is that BK isn’t strategically driving thru the doughnut hole left by Krispy Kreme’s woes.
Though the company denies it, BK seems aimed at turning things upside down tax=wise.
You know, “invert” itself into a Canadian company so that it doesn’t have to pay U.S. taxes on money it earns outside the boundaries of the U.S.
Here’s where things start to get interesting ….
Team O has been hyperventilating about inversions … arguing that tax inversions deprive the Feds of massive amounts of squanderable tax revenue … money that the government earned fair-and-square by assembling the world’s most complicated and punitive tax codes.
So, the same administration that chanpions porous entry borders, want to erect legislative walls to keep tax payers in.
Warren Buffett has been Obama’s most dependable frontman, consistently cheerleading for tax increases … on other people … all while sheltering his multi-billion dollar estate from death taxes by bequeathing his gold stash to his buddy Bill Gate’s “charity”.
Well, the BK deal seems to have brought out Buffett’s true colors.
Though his buddy Barack has been ranting about inversions as unpatriotic and worse, Buffett is anteing in about 25% of the money that BK needs to close its inversion deal.
The Tax King is dead … long live the Burger King,