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The urge to merge for Burger King is a whopper


MIAMI (WKZO) -- It’s something we have been reporting on for more than a month and it’s in he news again following reports that Burger King has closed a deal to gobble up Tim Horton’s Coffee Shop chain.

The allegation is that the Miami based Burger King is only doing it so the firm can take advantage of Canada’s lower tax rate, a claim the company denies.

Former Michigan Governor John Engler, the chairman of the CEO’s Business Roundtable defends the practice called tax inversion. He says its like a ball player moving from New York to Florida to avoid state Income taxes. 

The President says it may be legal but its not fair.

WMU Finance Prof. Christopher Korth says as corporations seem to be tightening their grip on Congress, they are footing less of the bill.

Their tax payments used to fund 20 to 30% of the U.S. Government. Now its down to 10%.

Just as Walgreens backed off plans to move its headquarters to Europe after a tidal wave of bad publicity, Burger King may face a whopper of a boycott if they go through with the deal.

Perrigo recently moved their headquarters to London with the acquisition of a drug research firm there. Pfizer is still trying to merge with Astrazenica which is based in Ireland.

The Italian-American merger of Fiat and Chrysler will call the Netherlands home.