More firms are making merger deals with Foreign Companies and moving headquarters away from the kriets with a country with a lower tax base. It is called the corps inversion. It is greed or Good Business . Thats our cover story. Wisconsin based Johnson Controls and Tyco International announced a plan to merge with a Company Headquarters in ireland. They say it is not only for tax reasons the move is expected to save 150 million a year. They are part of a trend of businesses moving overseas and lowering their tax bill, in part because the u. S. Corporate income tax is 39 , among the highest in the world. Although with the deductions and loopholes few companies actually pay the full rate. Using a technique called inversion they can reincorporate in another country and pay the rate on the income it earns there. The largest deal announced last year to combined u. S. Based Pharmaceutical Company fooizer with allergan and moving to the tax rate the 152 billion deal is still pending and they
Amazon. And its stock is paying the price. The Online Retail behemoth earned a dollar a share. That translates into its largest quarterly profit in its 19year history. But investors wanted more, a lot more. Expects were 1. 56 per share. Revenue came in shy of estimates despite rising more than 20 from a year ago. And as for its shares they were punished initially after that report. John ford has more on amazons results. Big number to watch in amazon earnings is the top line revenue wall street was looking for, 35. 9 billion in revenue, they got 37. 7 billion. Eps missed also. Its overall growth thats been driving the valuation for amazon. Amazon web services did well. That actually beat despite high expectations. But the stock fell after hours on that topline number. Well have to see the impact is on other highvaluation stocks because this is certainly one of the ones that gets a lot of notice. Guys back to you. John ford reporting. A different story altogether for dow components micro
Amazon. And its stock is paying the price. The Online Retail behemoth earned a dollar a share. That translates into its largest quarterly profit in its 19year history. But investors wanted more, a lot more. Expects were 1. 56 per share. Revenue came in shy of estimates despite rising more than 20 from a year ago. And as for its shares they were punished initially after that report. John ford has more on amazons results. Big number to watch in amazon earnings is the top line revenue wall street was looking for, 35. 9 billion in revenue, they got 37. 7 billion. Eps missed also. Its overall growth thats been driving the valuation for amazon. Amazon web services did well. That actually beat despite high expectations. But the stock fell after hours on that topline number. Well have to see the impact is on other highvaluation stocks because this is certainly one of the ones that gets a lot of notice. Guys, back to you. John ford reporting. A different story altogether for dow components micr
There. The largest deal announced last year to combined u. S. Based Pharmaceutical Company fooizer with allergan and moving to the is still pending and they are not alone. It includes medtronices which moved to ireland. Even miamibased fast food giant burger king merged with tim hortons. When American Companies shift their legal headquarters abroad for a lower tax bill who wins and who loses . Walt wither isaacson is the ceo can of the aspen institute. Thank you for being with us today. Great to be with you, becky. Is this Good Business or greed . I think we have to balance the question of whether a corporation is supposed to be return to the shareholder or whether the corporation has other stakeholders, suppose to do things for its longterm advantage but also for people and communities where they live. We have always had that debate. It has to be a balance. The problem is with a 39 Corporate Tax rate, and 150 million to be made each year, if you do an inversion like the one you talked
The u. S. Corporate tax rate is among the worlds highest. In a move to lower the tax bills more firms are making merger deals with Foreign Companies and moving headquarters away from the kriets with a country with a lower tax base. It is called the corps inversion. It is greed or Good Business . Thats our cover story. Wisconsin based Johnson Controls and Tyco International announced a plan to merge with a Company Headquarters in ireland. They say it is not only for tax reasons the move is expected to save 150 million a year. They are part of a trend of businesses moving overseas and lowering their tax bill, in part because the u. S. Corporate income tax is 39 , among the highest in the world. Although with the deductions and loopholes few companies actually pay the full rate. Using a technique called inversion they can reincorporate in another country and pay the rate on the income it earns there. Year to combined u. S. Based Pharmaceutical Company fooizer with allergan and moving to t