Fast Food Chains Use Loopholes And Low-Tax Countries To Avoid Millions In Taxes Each Year

Technology companies have mastered the use of schemes involving low-tax foreign countries in order to avoid billions of dollars in American taxes each year. Now, fast food chains like McDonalds, Burger King, and Subway are doing the same.

When the companies create a product, like Burger King’s Whopper hamburger, they can classify it as intellectual property. Franchises then pay a fee to the company to sell the product and use the company logo. But instead of collecting the fees in the United States, where the intellectual property filings were created, Burger King, McDonalds, and other chains often house the fees in other low-tax countries in order to save millions of dollars.

McDonalds and Burger King each have overseas headquarters in Switzerland. Subway sends most of its overseas profits to Curacao, a low-tax haven in the Caribbean. Coffee-chain Starbucks also utilizes the intellectual property loophole to help reduce its corporate tax rate.

Anti-business Biased view: Corporate tax is percentage of profits - a small number. Payroll with-holding and sales tax is a percentage of sales - two huge numbers. To create growth and jobs, corporate tax should be eliminated.

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