Walgreen pressured to ditch US for Europe
The company's tax rate of 37.5% could drop to 20% overseas. Some shareholders are pushing for a move.
Walgreen, headquartered in the Chicago suburb of Deerfield, acquired 45 percent of Alliance Boots in 2012 and holds an option to purchase the remainder of the company. The first Walgreen’s opened in Chicago in 1901.
At a private meeting convened Friday in Paris, the FT reports, investors owning a nearly 5 percent aggregate stake in Walgreen pressed the case for shifting Walgreen's headquarters out of the U.S.
UBS analysts recently put Walgreen's tax rate at 37.5 percent in comparison, according to the FT, with the 20 percent rate paid by Alliance Boots.
The shareholder group at the Paris meeting is said to have included Goldman Sachs (GS) and several notable hedge-fund firms. Walgreen CEO Greg Wasson and CFO Wade Miquelon, as well as Alliance Boots Chairman Stefano Pessina, are reported to have attended.
Walgreen has been viewed as resistant to the notion of moving its head office overseas, with Crain's Chicago Business columnist Joe Cahill recently quoting a company spokesman as saying, "We have no plans for an inversion transaction," referring to a procedural step via which the company would relocate to a lower-tax country.
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This is why corporations leave this country. We need to clean up the business tax laws to encourage corporations to stay here.
All these companies are global in nature and that's why they are called multinationals. They have one thing dear to them and that is the bottom line profit. For that they will go where it is necessary and they will do what is necessary.
For years, they have used the economy difference between developing nations and developed nations to take advantage and make money by manufacturing at less and selling at high and also by reducing the quality.
Now that they have bled the US economy, they would naturally want to escape the consequences of higher taxation.
We the People, have to start a nationalistic movement of "BUY AMERICAN", if we want our country to stay ahead. We the people also need to make sure that our government does not sell out to the lobbyists for these corporations. We the people also need to ensure that the government reduces its expenses and hence the taxes so that business is viable. With increase in manufacturing jobs, people who are using the entitlement programs right now will get to earn their income and reduce the burden on the programs.
lets realize one thing that people come in all shapes and forms and intellectual levels and educational levels but they all want jobs. Only keeping the high-tech jobs in the country is not going to provide jobs to everyone. The category of the jobs should be in this wide range, which should include manufacturing at a higher percentage to keep the maximum population engaged.
Also, manufacturing is the engine of economy that takes components valued at dollar one and creates a product valued at dollar 10, while providing wages to labor. This engine should not stop for any economy. That is what these corporations have stalled in us by minimizing the labor cost first. and then taking the manufacturing out all together. All this done with the help of no other than our administration under one bill or the other.
We the people...it is time to wake up.
Absolutely clueless... Companies VOTE with their feet. They leave places like Detroit, Illinois, NY, NJ and flee to better BUSINESS climates. This happens on a global scale as well.
Maybe we should re-examine our highest in the world corporate taxes? Maybe we should end the regulatory war on business? Maybe we should end new crap like Obamacare?
Or maybe we will just continue to watch as Productive Americans vote with their feet and leave, all the while the parasites will poor into the country...
End the democrats war on business!
The Obama Minions have created a hostile environment against "evil Business" and are driving companies headquarters out of the Tax happy states or this country all together. Look a NY, NJ
We need to vote all of these socialist progressives out of office, and create business friendly places, which will help to hire people into positions of higher salary, not create just "hamburger positions"
This is their right. Remember though corporations are not people and they are not American.
They are muti-national corporations that have no real ties t the US.
If we as consumers do not stop screaming at each other and start paying attention to these corporations our children and grandchildren will be living in a completely service oriented country serving the rich.
BUY AMERICAN NO MATTER WHAT IT COSTS.
If a company wants to act like they could care less about our country then boycott them. Stop spending your money with them. That is the only thing they respond to.
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