By in Breaking News

If Walgreens Moves to Switzerland We Should Hit 'Em Where It Hurts

As you've probably heard, Walgreens is considering moving its corporate headquarters to Switzerland to lower its tax rate . That may be good for the company's shareholders, but it's bad for America.

The backlash over Walgreens has prompted senate Democrats to introduce the "No Federal Contracts for Corporate Deserters Act." That's a wonderful idea, but in the case of Walgreens it should go further. According to Senator Bernie sanders, approximately one quarter of Walgreens' sales came from Medicare and Medicaid.

I, for one, think the bill doesn't go far enough. In my opinion, if Walgreens does make the move they should be barred from receiving any money from any federal, state, or local government program, especially Medicaid or Medicare, even if the prescription benefits are through a third party such as a HMO.

That may sound harsh, but it makes sense to me to hit 'em where it hurts.


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Comments

MegL wrote on July 30, 2014, 5:29 PM

All the big global companies are moving to where they can make most profit and pay least tax for the benefit of those who buy their products. Amazon, for instance has been criticised in the UK because it pays so little Corporation tax, yet makes millions in profits from the UK. There are other big global companies that do the same. Governments are at fault for allowing this and Governments are also in discussion about allowing business to sue countries that don't allow them to sell their products!!!! This is the TTIP, with secret courts. Where does big business think it's coming from?

Ruby3881 wrote on July 30, 2014, 6:27 PM

One of my biggest sore spots is corporate tax evasion. I still can't get over the former Canadian prime minister who registered his shipping company in a landlocked foreign company to avoid paying taxes - while he was serving in office! It was one of the worst cases of lack of patriotism and integrity. I think you are right that any company that deserts should be cut off from federal funding. More power to you!

indexer wrote on July 30, 2014, 8:39 PM

I have to confess that I have never heard of Walgreens, but it sounds as though they are quite a big company. They are therefore not alone in trying the trick of locating their assets in places where they will avoid having to pay tax. Tackling this issue will be very difficult, and there will be many accusations of hypocrisy when it is discovered that the people seeking to pass laws to prevent such actions are themselves doing everything they can to pay as little tax as possible - for example by locating their fortunes in tax havens such as the Cayman Islands.

Mysgeek wrote on July 31, 2014, 12:26 AM

indexer Walgreens is a huge drug store chain here in the U.S. that has always made a big deal of its origins. What they are considering is a huge slap in the face to its U.S. customer base.

It is a growing trend for companies to "move" their headquarters to avoid taxes and we're hoping to cut off that trend. They still use our infrastructure but don't want to pay their fair share.

And yes, some of the lawmakers do slimy things like hiding money, tax-wise, but we are very vocal in our displeasure over it. The only way we can stop it is to take a stand.

somedsatisfied wrote on October 20, 2014, 1:25 PM

Interesting. I wonder what ever happened with this.

AliCanary wrote on December 25, 2014, 8:42 PM

I'm no fan of corporations, and this is just exactly the kind of obnoxious crap that makes me feel that way. Vote with your wallet, people!

LeaPea2417 wrote on December 28, 2015, 4:05 PM

It is bad when companies move to other countries and don't stay in America. It hurts the American worker..