The subject of tax inversion, in which American firms avail of lower tax rates in foreign countries by merging companies in those countries, has become very topical in the last couple weeks thanks to a decision by Abbvie, a drug company, to merger with Shire, an Ireland-based firm and move its headquarters overseas. One of at least 47 tax inversions in the last decade, the Abbvie-Shire deal is the largest such action yet, worth $54 billion. Perhaps unsurprisingly, President Obama and Democrats in Congress have become apoplectic with rage at the audacity of a business making a prudent decision to escape bloodsucking taxes.
A cautionary tale about the pitfalls of bureaucratic incompetence played out in Ireland over the last several days. American country music star Garth Brooks was scheduled to play five concerts in the Croke Park arena, one of the largest venues in the country. In all, 400,000 tickets were sold. That is an astonishing number, considering Ireland’s population is just under 4.6 million. Close to one in ten citizens was planning to attend!
This year marks one hundred years since the beginning of the First World War in the summer of 1914. The Great War, as it used to be called, brought great devastation in its wake. Millions of human lives were lost on the battlefields of Europe; vast amounts of accumulated wealth were consumed to cover the costs of combat; and battles and bombs left a large amount of physical capital in ruins. But the “war to end war,” as it was called, also resulted in another weapon of economic mass destruction – an orgy of paper-money inflations.
The siren song of independence and national self-determination has sounded once again across Europe. It is a song that holds echoes of a century ago, when the internal force of nationalism convulsed the European empires into world war. Yet, while the song remains the same, the tune has changed.
Russian president Vladimir Putin’s power grab and annexation of the Crimea has filled global news headlines as he attempts to reverse what he has called the “greatest geopolitical catastrophe of the twentieth century” – the collapse of the Soviet Union. But it needs to be remembered that this conflict has its deeper roots in two ideas that have plagued the world for over two centuries: nationalism and government interventionism into economic affairs.
Rather than enforcing European competition law against systemic abuses of dominance by the single most dominant company in Europe, this political deal surrenders inexplicable concessions, including defining Google’s 90 percent share as not dominant, claiming its multiple abuses of dominance are legal and implying Google did nothing wrong.
This time of the year, whether in good economic times or bad, is when Americans gather with their families and friends and enjoy a Thanksgiving meal together. It marks a remembrance of those early Pilgrim Fathers who crossed the uncharted ocean from Europe to make a new start in Plymouth, Massachusetts. What is less appreciated is that Thanksgiving also is a celebration of the birth of free enterprise in America.
You’ve heard the cliché: “Sometimes you win, sometimes you lose.” Within the past month, I’ve experienced both sides of that adage—in reverse. On April 2, I was driving from Albuquerque[...]
In honor of Margaret Thatcher’s memory, favorite quotes from the Iron Lady have popped up everywhere. This one came across my Facebook newsfeed: “Global warming ‘provides a marvelous excuse for[...]